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Australian shares rose 0.3 percent on Friday, recovering from one-month lows, with miners leading gains after China approved infrastructure plans worth $157 billion and the European Central Bank announced a long-awaited bond-buying programme. The benchmark S&P/ASX 200 index gained 12.9 points to 4,325.8, according to the latest data. It nudged up 0.2 percent for the week, snapping two straight weeks of losses. New Zealand's benchmark NZX 50 index rose 0.8 percent to 3,722.2 points.
Gains were capped by weakness in the banking sector, which has risen in recent days as investors switched out of mining stocks amid weaker metal prices. Banks edged lower on Friday as investors returned to miners, traders said. BHP Billiton rose 2 percent and rival Rio Tinto jumped 4.4 percent as metal prices nudged higher. Fortescue Metals Group snapped three consecutive days of sharp falls to climb 11.5 percent, its sharpest daily rise in 33 months. No 3 lender Westpac Banking Corp led losses for the sector, dropping 0.8 percent. Qantas Airways Ltd extended gains to a three-month high, climbing 5 percent to A$1.26, following Thursday's rally after it agreed a 10-year alliance with Dubai's Emirates.

Copyright Reuters, 2012

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