Global Markets | Australian shares snap eight-session losing streak; miners lead broad gains

Australian shares rose for the first time this week on Friday, with miners leading a broad-based rebound, as an overnight pullback in ‌oil prices encouraged investors ⁠to ⁠cautiously rebuild positions.

The S&P/ASX 200 index closed 0.7% higher at 8,729.80, marking its best session since April ​8, but still lost 1.4% over the week after eight consecutive sessions in the red.

Oil prices eased overnight from a four-year peak on Thursday, while strong earnings from mega-cap technology companies lifted Wall Street.


Some buying interest in the ASX200 was expected after consecutive sessions ​of losses, William Taylor, COO and portfolio manager at etfshares, ⁠said, adding ‌that the solid U.S. corporate results buoyed global risk appetite.

However, ​Taylor cautioned against ​treating the benchmark's current level as a firm floor, saying "today's ⁠bounce looks more like a relief rally than a clear change ​in market direction".

"The rally still needs to be tested, particularly with oil prices sensitive to U.S.-Iran tensions, inflation risks elevated, and the RBA decision still ahead."

Miners led gains, rising 2.1%, with Rio Tinto and BHP each up over 2% after iron ore prices firmed on improved Chinese factory activity. Although the sector is still down 3.2% for the week. Financials fell 0.3%, with a 2.8% drop ‌in ANZ weighing the sector down. The bank flagged an increase in provisions to cover potential loan loss stemming from the Middle East conflict, while also reporting a 6% rise ⁠in half-year cash earnings. Meanwhile, major grocer Coles rose 3.7% after reporting higher quarterly sales, which took the consumer staples index 1.1% higher.

The focus next week will be on the ​central bank's monetary policy decision on Tuesday, where a quarter-point rise in the cash rate is about 83% priced in by markets.

A hike delivered with a measured message could comfort investors, but messaging that stresses concerns about inflation could put renewed pressure on equities, Taylor said.

In New Zealand, the benchmark S&P/NZX 50 index rose 1.1% to 13,039.20.