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ASX 200 benchmark logs third weekly gain
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Financials see best week since early March
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Energy stocks see best week since mid-July
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NZ50 logs worst week since Jan. 19
By Sneha Kumar
May 10 – Australian shares rose on Friday and posted their third straight weekly gain, with banking and energy stocks leading the charge, while renewed hopes of U.S. rate cuts on signs of an easing labour market also boosted sentiment.
The S&P/ASX 200 benchmark index closed 0.4% higher at 7,749 points. It rose 1.6% for the week.
“Australian stocks rode on a wave of optimism on Friday, mirroring a rosy Wall Street session last night,” said Hebe Chen, a market analyst at IG markets.
“The rally was fuelled by rising hopes for impending interest rate cuts in the United States.”
All three Wall Street indices gained overnight after data showed that the number of Americans filing new claims for unemployment benefits increased more than expected last week, in a sign that the U.S. labour market was easing.
All eyes will be on U.S. consumer price index data next week, which could provide for more clarity on the Federal Reserve’s monetary policy path.
On the local bourse, rate-sensitive financials rose 0.7%, and posted their best weekly gain in two months. The “Big Four” banks closed up between 0.4% and 1.3%.
Energy stocks advanced 1.9% as oil prices rose amid recent positive signs of economic recovery in China. Sector majors Woodside and Santos climbed 1.9% and 2.1% respectively.
The sub-index also added 4.3% this week, posting its best weekly gain since mid-July.
Gold stocks rose 3.5% this week, their first weekly gain in four, as bullion prices gained on renewed Fed rate cut hopes.
Heavyweight miners ended flat on Friday, but logged a weekly gain of 1.6%.
Local media reported that Rio Tinto had considered an offer for British miner Anglo American, which is now BHP Group’s $39 billion takeover target. Rio and BHP fell 0.2% and 0.4%, respectively.
New Zealand’s benchmark S&P/NZX 50 index ended 0.1% higher on Friday, and posted its worst week since Jan. 19.
This article was generated from an automated news agency feed without modifications to text.
