Australian shares surged 2.5 percent on Friday, the biggest one-day gain since July 2013, after the Federal Reserve promised patience in raising US interest rates. The S&P/ASX 200 index jumped 127.8 points to 5,338.6 at the close of trade, with all sectors advancing. The benchmark climbed 1 percent on Thursday. The two-day rally helped the index post its best weekly performance in eight weeks, rising 2.3 percent.
New Zealand's benchmark NZX 50 index on Friday rose 0.17 percent or 9.27 points to finish the session at 5,527.75. The gains came even as oil stayed under pressure and base metals fell. "There is a general good feeling in the market after the Fed announcement. Probably also coupled with the fact that we are getting into holidays," said Sydney-based Kara Ordway, analyst at City Index.
A Reuters poll showed Australia's benchmark share index was set to end 2015 at its highest since May 2008 as risks from weak commodity prices were seen likely to be eclipsed by an improving US economy and hefty inflows from pension funds. The "Big Four" Commonwealth Bank of Australia, Westpac Banking Corp, ANZ Banking Group and National Australia Bank were up about 1.5 percent. Among large miners, BHP Billiton rose 2.4 percent and Rio Tinto gained 2 percent, while gold major Newcrest mining rose 2.6 percent.
Elsewhere travel insurer Cover-More rose 11 percent, its biggest single-day gain since listing in 2013. Energy stocks such as Woodside Petroleum, Caltex and Beach Energy were up 1.7-3.9 percent. New Zealand's gold prospector OceanaGold led the market higher, rising 6.8 percent to a one-week high of NZ$2.36 ($2), boosted as global gold prices appeared to stabilise from a dip earlier this week in volatile trading. Fletcher Building climbed 2.64 percent to a one-week high of NZ$8.15 when Deutsche Bank raised its price target for the construction materials company, one of the country's largest firms.
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