Australian shares inched higher on Friday, helped by gains in banks, as investors awaited a key US jobs report that could shape the size of rate cuts from the Federal Reserve.

The S&P/ASX 200 index rose 0.1% to 7,992.3 by 0041 GMT.

The benchmark index was set to close the week 1.2% lower.

The US nonfarm payrolls report, due later in the day, is likely to allay fears of a slowdown in the world’s largest economy and lay the groundwork for monetary policy easing to begin later this month.

In Sydney, heavyweight financials rose 0.6%, with the “big four” banks up between 0.4% and 0.8%.

Energy stocks fell 1% as oil prices held near a 14-month low.

Sector giant Woodside Energy declined 0.6%, while Santos fell 0.9%.

Brent crude futures rose 0.06% to $72.73 a barrel, while US West Texas Intermediate (WTI) crude gained 0.09% to $69.21 per barrel.

Miners slipped nearly 0.1% after iron ore prices hit a one-year low on Thursday on concerns about demand from top consumer China.

Mining behemoths BHP and Rio Tinto fell 0.1% and 0.3%, respectively.

Banks, miners lift Australia shares; energy stocks tank

Overnight, the US Dow Jones Industrial Average fell 219.22 points, or 0.54%, to 40,755.75.

The S&P 500 lost 16.66 points, or 0.30%, while the Nasdaq gained 43.37 points, or 0.25%.

In New Zealand, the benchmark S&P/NZX 50 index was down 0.2% at 12,651.13.

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