Financials extend gains, up 0.5%
Consumer, real estate snap 5-week green streaks
Energy firms end 0.3% lower as oil prices slip
Sept 5 (Reuters) – Australian shares firmed on Friday, tracking Wall Street’s record high, as bets on a U.S. rate cut this month rose, although the benchmark posted its first weekly decline after rising for four consecutive weeks.
The S&P/ASX 200 index closed 0.5% higher at 8,871.2 on the day. The benchmark fell 1.1% for the week, having logged its sharpest drop in nearly five months on Wednesday, after investors pared bets on Reserve Bank of Australia rate cuts following stronger-than-expected economic growth data.
Last month, the benchmark index had posted its strongest monthly performance since 2009, fuelled by corporate earnings and easing borrowing costs.
Overnight, U.S. private payrolls data missed forecasts while jobless claims exceeded expectations, reinforcing wagers on Fed easing. The S&P 500 notched a closing record high on Thursday.
A strong impulse in U.S. markets, regardless of the reason, tends to lift Australian equities given the global nature of investing, said Michael McCarthy, Australia and New Zealand CEO of trading platform Moomoo.
Financials climbed 0.5% on Friday, led by gains across “Big Four” banks, though the sector logged its weakest week since late July.
Valuations in the banking sector are stretched, but not excessively so, especially compared to tech or even U.S. banks; they are relatively undervalued, McCarthy added.
Consumer discretionary and real estate stocks ended over 1.3% higher on the day, but snapped five-week winning streaks. Technology shares rose 1.2% tracking its U.S. peers but posted its weakest weekly performance since early April.
Gold stocks climbed 2.1% on the day and notched their fifth consecutive weekly advance.
Oil prices were headed for a weekly loss, weighing on domestic energy stocks, which ended 0.3% lower.
Investors’ attention now turns to U.S. non-farm payrolls data, due later on Friday.
In New Zealand, the benchmark S&P/NZX 50 index ended 0.7% higher at 13,223.53 points. The benchmark posted its best weekly performance since early May. (Reporting by Kumar Tanishk in Bengaluru; Editing by Eileen Soreng)
