Australian shares extended gains on Friday as mining stocks surged, set for for their best week in more than eight years as a series of stimulus measures announced by top consumer China boosted sentiment.

The S&P/ASX 200 index rose by 0.2% to 8220.3 by 0032 GMT, on track to record its third consecutive week of gains.

The benchmark ended 0.95% higher on Thursday.

In Sydney, miners led the benchmark higher and gained 2.2% on the back of surging commodity prices. The sub-index gained 9.9% in the week and was on track to record its best week since April 2016.

China, Australia’s top trading partner, announced on Thursday its largest stimulus package since the pandemic to lift its economy out of deflation.

Mining behemoths BHP Group, Rio Tinto and Fortescue added between 2.3% and 4%. Technology stocks tracked their overseas peers higher, and were up 0.1% in the green.

Offsetting gains, financials sub-index lost 0.6%.

The sub-index lost 4.5% in the week to record its worst week since June 2022.

Earlier this week, the RBA held its cash rate steady but maintained a hawkish stance, which prompted investors to further reduce expectations of a rate cut in December.

Energy stocks shed 1.5%, as oil prices slipped by 3% on media reports that Saudi Arabia would give up its $100 price target in preparation for raising output.

Australian shares rise on boost from banks, miners

Brent crude futures fell 0.81% to $71.02 a barrel while US West Texas Intermediate (WTI) crude lost 0.87% to $67.08 per barrel.

Sector heavyweights Woodside and Santos were down 1.1% and 0.1%, respectively.

In company news, Australia’s no. 2 casino operator Star Entertainment slumped by 54.4% to its all-time low as it resumed trading a day after posting a second straight multi-billion-dollar annual loss.

The US S&P 500 index was mostly unchanged? on Thursday, while Nasdaq gained 108.09 points, or 0.60%.

Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index fell 0.4% to 12,540.54.