Australian shares lost momentum in late trade as investors preferred to close positions ahead of key US data that could set the market's tone next week, but the index still rose 0.8 percent to a one week closing high. "People are looking to reduce risk by selling into a rising market. With US data due and recent bouts of volatility investors don't want to carry positions over the weekend," Ric Spooner, markets strategist said.
If US data meet or beat expectation, and no new global shocks emerge over the weekend, Spooner said he expects beaten down Australian stocks to trade higher next week. The benchmark S&P/ASX 200 index rose 31.79 points to 4,172.6, according to latest available data, after being up 1.8 percent intraday. The market snapped a two-week losing streak and rose 1.6 percent for the week.
Retailers were mixed with JB Hi-fi climbing 1.4 percent while Myer falling by a similar amount. Big miners made solid gains, with BHP Billiton up 0.7 percent and Rio Tinto closing 1.6 percent higher. The Australian trade minister said China will need large quantities of Australian raw materials as its industrialisation and urbanisation race ahead, despite concerns about weak global economic conditions. The banks lost ground in late trade with no.4 lender Australia and New Zealand Banking Group dropping 0.9 percent. The banks are among the most exposed Australian stocks to global volatility because of their dependence on wholesale funds.
Phone company Telstra rose more than 2 percent to A$3.05, as it continued to bask in the glow of Thursday's better-than-expected results. Coal miner Macarthur rose 2.3 percent to A$15.24 after Peabody Energy and ArcelorMittal got approval from Australia's Foreign Investment Review Board (FIRB) for their $5 billion take-over bid.
New Zealand transport firm Mainfreight rose 2.9 percent to NZ$10.05, backing up strong gains from Thursday when it reported a doubling of its first quarter profit on improved business performance. New Zealand's benchmark NZX 50 index trimmed early strong gains to be up 7.8 points, or 0.25 percent, to 3,216.5.
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