PHOTO
Pedestrians are reflected in a window displaying stock prices at the Australian Securities Exchange (ASX) in Sydney, Australia, February 13, 2018. David Gray, Reuters Image for illustrative purpose.
Australian shares advanced on Friday, helped by gains in heavyweight financial and commodity stocks, after weaker-than expected U.S. retail sales data boosted prospects of a June rate cut by the Federal Reserve.
The S&P/ASX 200 index closed 0.7% higher at 7,658.3 points, its highest close since Feb. 8. The benchmark gained only 0.2% for the week.
U.S. retail sales dropped 0.8% in January, leaving investors less stressed about the hotter than expected inflation data from Tuesday, with markets now pricing in a Fed rate cut in June.
"The softer U.S. retail sales print has investors feeling better about the interest rate outlook, and equity markets have risen as a consequence," Tim Waterer, Chief Market Analyst at KCM Trade, said.
In Sydney, mining stocks closed 1.6% higher on strong underlying commodity prices, marking their best day since mid-December 2023.
However, the sub-index clocked losses for a second consecutive week.
Heavy-weight miners BHP Group, Rio Tinto, and Fortescue gained between 1% and 1.2%.
Financial stocks closed 0.6% higher, with "Big Four" banks gaining between 0.7% and 1.9%.
Gold stocks and energy stocks gained 2% and 1%, respectively, at close.
Lithium miners emerged as top gainers on the benchmark as Liontown Resources, Sayona Mining, Core Lithium gained between 11.9% and 7.8%.
Australia classified nickel as "critical mineral", as its prime minister prepared wider policy support for the green energy industry.
In corporate news, Insurance Australia Group fell 4.3% while QBE Insurance Group fell 1.7% after their results missed analyst estimates.
New Zealand's benchmark S&P/NZX 50 index closed the session 0.7% higher at 11,724.48.
The Reserve Bank of New Zealand (RBNZ) governor said the central bank's current 2% mid-point inflation target remained appropriate, as it struck a "right balance between the costs and benefits of inflation". (Reporting by Sherin Sunny in Bengaluru; Editing by Mrigank Dhaniwala)