Australian share prices are expected to rise, continuing a recovery from jitters over the US credit squeeze that has seen the market post gains for four straight weeks, dealers said on Friday. The benchmark S&P/ASX 200 index closed on Friday up 0.4 percent at 6,306.8, representing a gain for the week of 24.4 points or 0.5 percent.
AMP Capital Investors chief economist Shane Oliver said investors believed booming demand for Australian resources would help insulate the market from any problems in the United States.
"The Australian market is now bouncing around in the 6,200 to 6,400 range that prevailed between May and July," he said.
"Australian shares have rebounded from the August slump much quicker than global shares thanks to a combination of good earnings results, perceptions that Australia is less vulnerable to a US downturn thanks to its exposure to China and perceptions that the Australian banking system is less exposed to subprime problems."
Oliver said Australian shares were about two percent below a record high posted in July, compared to a global average of six percent.
Only second-tier economic data is scheduled for release next week, chiefly new home and new motor vehicle sales. Retail giant Coles will post full-year results on Wednesday.
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