Australian stocks nudged up 0.1 percent on Friday, to its highest close in 8-1/2 months, led by gains in banks. The index also edged above a key chart resistance level of 4,800 points while snapping a two-week losing streak. It gained 2 percent for the week.
All four banks gained as investors saw value in the stocks after recent losses. Westpac Banking Corp , the country's third-largest bank, led the pack, rising 0.8 percent. Australia's benchmark S&P/ASX 200 index inched up 6.26 points to 4,801.50, registering its highest close since end-April, according to latest data.
This week, the market has largely shrugged off the deadly Queensland floods. The clean-up of Brisbane, Australia's third-largest city, began on Friday, although smaller towns remained on alert for fresh floods. Only the insurers, who are likely to pass on the bulk of their claims to the reinsurers, have had a mixed run during the week as concerns remained over the flood final claims.
"There was plenty of money flowing into the big banks and the big end of the consumer staples sector. On the banking side there may be the expectation that there is value to be found here," said David Land, chief market analyst at CMC Markets. "I think that this sector may remain a little subdued until it gets some decent upward momentum going."
Retailers continued their rise as investors felt the sell-off on weak Christmas demand was overdone. Top supermarket chain Woolworths led gains with a 2.4 percent rise to A$27.63, its highest close in nearly two months.