Australian shares rose on Friday, eyeing its best week in a month, as financial and real estate stocks lifted the benchmark index, while investors exercised caution ahead of a key inflation report next week.
The S&P/ASX 200 index rose 0.4% to 8,410 points by 0010 GMT.
The benchmark is set to log a weekly rise of 1.2%, its best since Dec. 23. It posted a 0.6% fall on Thursday.
Markets await fourth-quarter inflation data due on Jan. 29 that would provide clues on the Reserve Bank of Australia’s monetary policy stance.
Banking stocks, which account for nearly a quarter of the benchmark, rose 0.5%, with all “Big Four” banks gaining between 0.3% and 0.6%.
Higher-for-longer interest rates, while benefitting banks, slow credit growth and impact borrowers’ mortgage-paying capacity.
The subindex is set to log a 3.2% rise this week, its best since Dec. 23. Real estate stocks added to the gains, rising 1.1%, with top property developer Goodman Group surging 2%.
Analysts remain upbeat on the sector as rate cut prospects are expected to encourage consumers’ appetite for mortgages.
Consumer discretionary stocks also moved on the same sentiment to gain 1.7%, with Wesfarmers advancing 2.7%.
Banks, miners lift Australian shares; BHP gains on higher Q2 output
Interest rate cuts should further encourage spending, especially in by mortgage-constrained households, according to analysts.
The sector eyes a 1.8% gain this week, its best since Dec. 23.
Heavily weighted mining stocks lost 0.3%, with sector majors BHP and Rio Tinto falling 0.2% and 0.4%, respectively.
Miners are set to log a near 2% loss this week, snapping a four-week rally.
US President Donald Trump’s tariff plans on Chinese imports threaten demand for commodities including iron ore, which could adversely impact Australia’s resource-heavy economy.
New Zealand’s S&P/NZX 50 index was little changed at 13,047.89 points.
The benchmark is set for a weekly loss of 0.6%, its worst since Jan. 6.
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