Australian shares snap four-day decline as miners, banks rise

Australian shares snapped a four-day losing streak on Friday after an upbeat session on Wall Street, even as a re-escalation in the Middle East conflict raised supply concerns.

The benchmark S&P/ASX 200 index ended 0.5% higher at 8,806.00 points.

The benchmark lost 0.4% in the week. Wall Street ended sharply higher overnight, helped by Micron Technology’s plans to invest more than $250 billion in the US through 2035.

Meanwhile, Iran initiated attacks on US military infrastructure in Gulf states on Thursday, evoking fears of further supply disruption at the Strait of Hormuz.

“Today’s positive price action on the benchmark suggests investors are still leaning toward optimism… A better night on Wall Street helped sentiment,” said Tim Waterer, chief market analyst at KCM Trade.

Investors now turn to earnings reporting season, with mining giants BHP and Rio Tinto due to kick off reporting next week.

“Given their combined weight in the index, banks and the major miners will draw the bulk of investor attention regardless,” said William Taylor, COO and portfolio manager at ETF Shares.

BHP Group gained 2.5%, clocking its best day in nearly a month.

The mining index rose 2.5%, snapping four straight sessions of losses.

Banks edged 0.6% higher, their best week since the week ended May 22, with a higher-for-longer rate environment supporting margins.

All the “Big Four” banks traded in the green.

Gold stocks followed suit, climbing 2.7%, the index’s best day in a week.

Gold miner Genesis Minerals added 3.9%.

Capping gains, energy stocks dropped 0.2%, but logged their best week in nearly four months. Markets in New Zealand were closed on Friday for a public holiday.