Australian shares climbed on Friday after a sharp drop in the previous session, as mining and energy stocks gained, while investors awaited the US central bank’s favoured measure of inflation for rate-cut cues.

The S&P/ASX 200 index rose 0.7% to 7,911.7 by 0049 GMT after Thursday’s 1.3% drop, but was set for its worst week since early June with a drop of 0.7% so far.

The Aussie dollar was 0.1% weaker against the US dollar at A$0.65.

Globally, market participants were waiting for the US personal consumption expenditure data, due later in the day, to calibrate their expectations of the timing of rate cuts.

In Australia, miners climbed 1.5%, even though iron ore prices were weaker.

Mineral Resources gained as much as 6.1% after the diversified miner said it was on track to achieve its production guidance.

Energy stocks rose 1.4% as oil prices were slightly higher on stronger-than-expected US economic data.

Oil and gas producers Woodside and Santos gained 1.1% and 2%, respectively.

Brent crude futures rose 0.02% to $82.39 a barrel, while US West Texas Intermediate (WTI) crude were flat at $78.28 per barrel.

Oil prices settled higher on Thursday after strong US economic data stoked expectations for higher crude demand. Overnight, the US Dow Jones Industrial Average rose 0.20%, while the S&P 500 lost 0.51% and the Nasdaq fell 0.93%.

Australian shares hit record high; RBA cautious on inflation

The yield on benchmark 10-year Treasury notes rose to 4.2407%, compared with its US close of 4.256%.

Australian banks gained 0.5%, with the “Big Four” lenders up between 0.4% and 0.6%.

Bucking the trend, gold stocks fell 2.8%, after bullion prices slipped on Thursday to their lowest levels in more than two weeks.

In New Zealand, the benchmark S&P/NZX 50 index inched 0.1% higher to 21,412.89.