Australian stocks closed higher on Friday, led by technology firms, although the benchmark index marked a fourth straight weekly loss as surging inflation, aggressive rate hikes, and COVID-19 lockdowns in China continued to weigh on markets.
The S&P/ASX 200 index ended 1.9% higher at 7,075.10 — its best day since Jan. 28. “Markets may be taking a breather after what has been a week of heavy selling,” said Kerry Craig, global market strategist at J.P. Morgan.
The benchmark index shed 1.8% for the week, as sentiment took a hit amid losses in world equities as investors focused on tightening monetary policies by central banks, which fuelled concerns of a global economic slowdown.
Domestic growth-linked technology stocks led gains with a 7% jump, but the sub-index clocked its worst weekly performance since late-January.
ASX-listed shares of Block Inc, WiseTech Global and Xero soared between 7% and 15%. Strong iron ore prices boosted the metals and mining index, up 1.6%.
Australian shares end at near 2-month low, strong forecast lifts Westpac
It, however, marked the worst week in three. Rio Tinto, BHP Group and Fortescue Metals rose about 2% each.
Financials advanced 1.4%, snapping a four-day losing steak.
The sub-index fell 1.2% for the week.
Australia’s four largest lenders were up 0.1%-1%. Energy stocks also gained 2.5% to see their best day in more than two months on firm crude prices.
Oil and gas explorers Woodside Petroleum and Santos rose 2.7% and 3.2%, respectively.
Going forward, the market will watch out for any significant catalysts, including any updates on inflation from Australia, United States and other regions, said Steven Daghlian, a market analyst at CommSec.
Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index ended 0.1% lower at 11,168.18.
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