Australian shares were flat on Friday, as heavyweight mining stocks offset losses in financials, while investors perused the weaker-than-expected domestic retail sales data that raised bets on a rate cut as early as next month.

The S&P/ASX 200 index traded at around 8,329.3 points by 2342 GMT.

The benchmark is on track to record 1% weekly gain in its second rise in three weeks.

Retail sales saw the biggest increase in 10 months in November 2024 as Black Friday discounting drew cost-conscious shoppers, but the rise missed forecasts suggesting the boost poses no impediment to the Reserve Bank of Australia (RBA) cutting rates at its February meeting.

Australian shares snap 5-day winning run; Fed minutes raise rate cut concerns

Mining stocks, which occupy nearly a quarter of the resource-heavy bourse, advanced 0.9% after iron ore prices rebounded on Thursday aided by top consumer China’s latest stimulus measures.

The sub-index is poised to finish a third straight week in the green.

Sector majors BHP, Rio Tinto and Fortescue gained 1.2%, 1.5% and 0.2%, respectively.

Heavily-weighted financials, which have long benefited from higher-for-longer rates, dropped marginally, with two of the ‘Big Four’ banks in the red.

The sub-index is, however, set to end the week 2% higher. Energy stocks eased on the day despite higher crude prices but are set to log three consecutive weeks of gains.

Sector heavyweights Woodside Energy traded flat and Santos slipped 0.1%.

Gold miners logged four straight days of gains and are set for their best week since Nov. 18, 2024, with sub-index majors Northern Star Resources and Evolution Mining adding 1% each.

New Zealand’s S&P/NZX 50 index edged marginally higher to 12,961.01 points. The benchmark, however, is set for a second consecutive week of losses, shedding 0.8% this week.