INSUBCONTINENT EXCLUSIVE:
Australian shares closed higher on Friday, snapping three weeks of consecutive losses, as investors were heartened by growing views that the
country's central bank may consider an interest rate cut at some point next year.
Sentiment was also bolstered by speculation that USFederal
Reserve will pause its tightening cycle after the widely expected rate hike later this month.
Overall, however, buying was somewhat tempered
after this week's arrest by Canada of a top executive of Chinese tech giant Huawei for extradition to the United States, which threatened to
spark a fresh clash between the world's two biggest economies.
The SP/ASX 200 index rose 0.4 per cent or 23.8 points to 5,681.5 at the close
of trade for a weekly gain of 0.25 per cent
The benchmark lost 0.2 per cent on Thursday.
James McGlew, executive director of stockbroking at Argonaut, said the market was supported by
the possibility the Australian central bank could cut interest rates next year if wages growth and inflation accelerate.
Reserve Bank of
Australia Deputy Governor Guy Debelle said in a speech on Thursday that while the next move in rates is like to be up, there is still room
to ease.
The comments come a day after a disappointing reading on domestic economic growth led financial markets to wipe out any probability
of a hike in rates next year and even price in a small chance of an easing.
Healthcare stocks drove the gains on the benchmark, with the
country's fifth biggest firm by market value CSL firming 2.6 per cent, while Cochlear rose about 3 per cent.
Top lender Commonwealth Bank of
Australia climbed 1 per cent, while the benchmark was also underpinned by a jump in consumer cyclicals
Conglomerate Wesfarmers rose 0.7 per cent, while Star Media Group advanced 5.3 per cent and was the top per centage gainer on the main
index.
However, the metals and mining sector lost 0.5 per cent, with index heavyweight BHP Group declining 0.7 per cent, hurt by a dip in
metal prices.
Shares of Westgold Resources fell 14.4 per cent to hit a record low after announcing its plan to divest its non-core lithium
royalties at two sites.
Wealth manager IOOF Holdings dived 35.8 per cent and was the worst performer on the benchmark after it said
Australia's prudential regulator is looking to disqualify the company's five top executives, including the CEO, for failing to act in their
customer's interests.
New Zealand's benchmark closed little changed as gains in consumer cyclicals were offset by a fall in the healthcare
sector.
The SP/NZX 50 index edged up 0.1 per cent or 9.10 points to 8,767.32.
Dairy giant A2 Milk rose 2.4 per cent, while retirement
village operator Ryman Healthcare slumped 1.3 per cent.
