Australian shares jump

Australian shares rose 1.7 percent on Friday to a two-month high, buoyed by expectations that easy monetary policy will continue in Europe. The S&P/ASX 200 index posted its biggest daily percentage gain since October 5, and closed up 87.76 points at 5,351.6. The benchmark rose 0.3 percent on Thursday. Trading has been subdued for much of this week as investors were wary ahead of Thursday's ECB meeting and next week's policy reviews of the US Federal Reserve and the Bank of Japan.
A sluggish start to US corporate earnings season had also dulled investor appetite, but thanks to Friday's stellar performance the index ended the week up 1.7 percent. New Zealand's benchmark NZX 50 index rose 0.8 percent or 47.07 points to 5,970.67.
The ECB, as widely expected, took no new steps on Thursday, but signalled it could extend its 1 trillion euro bond-buying quantitative easing program if necessary to combat weak inflation. Trading has been subdued for much of this week as investors were wary ahead of key events, including the now-concluded ECB meeting, and next week's policy reviews of the US Federal Reserve and the Bank of Japan.
A sluggish start to US corporate earnings season had also dulled investor appetite, but thanks to Friday's stellar performance the index is on track to end the week up 1.6 percent. For the month so far, it is up nearly 7 percent, on track for its best performance since October 2011. Major banks led the gains, with National Australia Bank rising 2.1 percent after it raised mortgage rates.
Commonwealth Bank of Australia and ANZ Banking were up 1.4 percent each. Miners BHP Billiton and Rio Tinto rose 2.3 percent and 1.8 percent respectively while Fortescue jumped 2.4 percent. Wesfarmers climbed 2.4 percent after first quarter data showed that Coles supermarkets gained more sales and market share amid an intensifying price war with Woolworths and German discount grocer Aldi Inc New Zealand stocks hit an all-time high as a surge in global markets overnight re-energised a flagging rally. The benchmark rose as far as 5,966.82, surpassing the previous peak of 5,963.05 set in August. It was up 2.4 percent so far this week.