Australian shares rose 0.4 percent on Friday, with energy and materials the best performing sectors on the back of positive bond auctions in Europe, although gains were capped by lacklustre economic data out of the United States. For the week, the market was 2.1 percent higher but faced tough resistance at the 4,200-point level.
"Once again, the market is lacking the impetus to make a sustained assault above 4,200, and with it being Friday afternoon there appears little interest in establishing new positions heading into the weekend," said Cameron Peacock market analyst, IG Markets
Shares in BHP Billiton and Rio Tinto rose more than 0.5 percent, while Fortescue was up 1.9 percent, with the stocks also helped by news that Port Hedland, one of the world's largest export terminals for iron ore, had reopened after being shut due to Tropical Cyclone Heidi. Australia's big four banks all climbed. National Australia Bank was up 1 percent and Commonwealth Bank of Australia rose 0.3 percent.
Shares in Linc Energy soared 17.7 percent on speculation the company had found a buyer for its Teresa coal asset in Australia. Shares in Gindalbie Metals jumped 7.5 percent after the company released an upbeat quarterly report. QR National rose 3.9 percent, the highest level since the company listed, after recording its strongest month since the 2011 floods, with Queensland Coal volumes in December increasing by 8.5 percent on the previous corresponding period.
QBE shares continued to falter, dropping 3.1 percent. The fall came after the stock lost 13 percent on Thursday when the insurer shocked investors after warning it expected 2011 earnings to fall by as much as half after hefty catastrophe claims. Analysts' forecasts had been for a rise.
The benchmark S&P/ASX 200 index was up 14.9 points to 4,195.9, according to the latest available data. The benchmark has recorded two straight weeks of gains, rising 3.4 percent so far in 2012. "Tonight could be crucial, we've got J.P. Morgan kicking off the financial reporting season, expectations there have been pared back a little bit over the last couple of weeks, however they do have a fairly good track record of beating expectations," said Peacock. New Zealand's benchmark NZX 50 index rose 0.2 percent to 3,227.5 points.