Australian shares rebound from three-month low, remain on track for weekly loss

Australian shares rose on Friday, recovering from a more than three-month low hit in the previous session as banks, energy stocks and easing bond yields lifted the benchmark, although it remained on track for a fifth consecutive weekly decline.

The S&P/ASX 200 index was up 0.4% at 8,647.8 points as of 0007 GMT.

For the week, as markets contended with a 15-year high cash rate and softer-than-expected yet stubbornly high inflation, the benchmark index was down 0.2%.

The benchmark closed 2% lower on Thursday, its lowest level since mid-June, pressured by a spike in bond yields.

Australian government bond yields fell in tandem with US Treasuries, with the benchmark 10-year yield easing to 5.36% and the three-year yield to 4.88%.

Financials rose as much as 0.6%, but were on track for a fourth consecutive weekly decline if current momentum persists.

All “Big Four” banks were up between 0.2% and 0.8%.

Energy stocks advanced 1.8%, headed for their best day since mid-September, as oil prices jumped overnight after China halted fuel exports. Sub-index heavyweights Santos and Woodside added 2.2% and 1.5%, respectively.

Miners climbed 0.7%, with behemoths BHP, Rio Tinto adding 0.7% and 0.5%, respectively, while gold stocks were up 0.4%.

Technology stocks rose as much as 3.8%, notching their highest level since early September.

The gauge is set to snap a sixth consecutive weekly loss, up 5.8% so far this week.

Consumer staples and discretionary stocks added 1% and 0.4%, respectively.

Bucking the broader positive trend, healthcare sub-index slipped 0.5% while real estate stocks shed 0.6%.

Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index fell 0.7% to 13,715.99 points.