** Australia's benchmark ASX 200 index .AXJO rises as much as 0.3% to 8,567.3 points, its highest level since February 14

** Index now 42.1 pips below record high of 8,615.2 points

** Most sectors in the green, with heavyweight mining subindex adding the most with a 0.5% gain

** Lynas Rare Earths LYC.AX among top gainers of AXJO constituents, up as much 8.1% to hit highest since April 22

** Markets ramped up bets on further monetary easing in July after data released on Wednesday showed soft economic growth .AX

** AXJO up 4.9% YTD, including current session's moves

(Reporting by Nikita Maria Jino in Bengaluru)

((Nikita.Jino@thomsonreuters.com;))