June 28 (Reuters) - Australian shares rose on Friday, setting up the benchmark index for modest gains for the first half of the year, as waning economic growth coupled with high inflation and interest rates and prospects of a rate hike weighed on performance.

The S&P/ASX 200 index rose 0.6% to 7,806.1 by 0046 GMT. The benchmark index had ended 0.3% lower on Thursday.

The index was on track to rise 2.2% for the first six months of 2024, almost in-line with 2.3% gains a year earlier, but lower than a 5.4% jump in the second half of 2023.

Australia's economic growth slowed down significantly in the first quarter and inflation, which has been inching up during the year, was surprisingly strong in May, raising fears of a rate hike from the central bank rather than a rate cut, even as interest rates remain at 12-year highs.

Investors are now awaiting the U.S. personal consumption expenditures price index due later in the day, which could provide further clues on the Federal Reserve's rate cut trajectory.

In Sydney, interest rate sensitive financial stocks climbed 1.1% for the day. The 'big four' banks gained between 0.1% and 0.5%. The sub-index was set for its best half year since mid-2021.

Heavyweight mining stocks retreated 0.6% and were on track for their worst half year since late 2015.

Gold stocks rose 0.8% for the day, while energy stocks climbed 0.4%.

The energy sub-index was set for its worst half year since first half of 2020, while gold stocks were set to drop after posting strong gains a year earlier.

Suncorp rose 4.6% to its highest level since November 2007 after Federal Treasurer gave approval for ANZ Group's A$4.9 billion ($3.26 billion) buyout of Suncorp's banking arm.

Markets in New Zealand were closed for a public holiday.

(Reporting by John Biju in Bengaluru; Editing by Rashmi Aich)