Australian shares snapped a three-session losing streak on Friday as retail giant Wesfarmers soared after announcing plans to spin off its Coles supermarket division, but broader gains were capped by further weakness in banks. The S&P/ASX 200 index closed 0.5 percent higher or 28.6 points at 5949.4, but finished the week down 0.2 percent.
The benchmark fell 0.2 percent on Thursday. Investors flocked to Wesfarmers' stock after it announced plans to spin off its Coles supermarket, which earns far less than it costs to run, and list it on the Australian Securities Exchange.
Wesfarmers shares gained as much as 7.4 percent at one point and ended 6.3 percent higher at its best in over a month, while rival Woolworths rose 1.3 percent. Adding to the sector's cheer, fashion retailer Premier Investments rose 6.1 percent to its highest since October 2016 after reporting a 9.4 percent rise in first-half profit.
Materials stocks also buoyed the index, riding on strong metal prices, with the mining index gaining 1 percent, its best close in a week. Top miners BHP Billiton and Rio Tinto rose 1 percent and 0.7 percent, respectively.
South32 Ltd rose 5.6 percent after Credit Suisse upgraded the stock to "neutral" from "underperform". Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index reversed early losses to close at a record, and ended its second straight week higher.
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