Australian shares rose for a fourth consecutive day on Friday, scaling fresh two-month peaks as renewed hopes for progress in resolving the US-China trade war boosted risk appetites. The S&P/ASX 200 index closed 0.5 percent or 29.5 points up at 5,879.60, advancing 1.8 percent for the week, its second consecutive weekly gain. The benchmark had risen 0.3 percent on Thursday.
The US stocks rallied after Wall Street Journal reported that US Treasury Secretary Steven Mnuchin discussed lifting some or all tariffs imposed on Chinese imports and suggested offering a tariff rollback during talks scheduled for January 30.
All the 'Big Four' banks firmed between 0.3 percent to 0.6 percent, with biggest lender Commonwealth Bank of Australia gaining the most. The metals and mining sector rose 0.7 percent and had its highest close since October 5. Mining giant and index heavyweight Rio Tinto gained 0.3 percent after its 2018 iron ore shipments from Australia's Pilbara region rose 2 percent and it set a higher target for 2019.
BHP Group gained 0.7 percent. It will report second-quarter production next week, as will oil and gas players Oil Search and Santos. Resource stocks are the second largest sector on the benchmark. The ASX Information Technology sub-index closed 1.7 percent higher with Afterpay Touch Group logging a 13 percent surge as the payment service provider's underlying sales in the first half topped A$2.2 billion ($1.58 billion). New Zealand's benchmark S&P/NZX 50 index advanced for the third straight session, ending 0.2 percent or 19.90 points higher at 9,097.71. It rose 1.5 percent this week.
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