Asia Pacific shares rallied for the first time in four days as oil dropped to a three-month low and the US Federal Reserve signalled it was in no hurry to raise rates, giving the market some hope that inflation will slow.

Sydney made some of the biggest gains among major markets, after the Reserve Bank of Australia said rates could be cut in the coming months leading to hope that it would spur consumer spending. Banks led the S&P/ASX 200 3.1 per cent higher to 4,969.1.