Australian shares rose on Friday as global trade talks boosted investor sentiment, while Macquarie Group’s better-than-expected profit lifted heavyweight banking stocks.
The S&P/ASX 200 index was up 0.5% at 8,231.2 points.
The benchmark fell 0.1% this week, its first weekly loss since early April.
US President Donald Trump announced a trade deal with the UK on Thursday, the first in a month in since Trump started a 90-day pause on tariffs to allow room for negotiations.
This fuelled hopes of progress in tariff talks with other countries, including China, Australia’s biggest trading partner, with negotiations set for Saturday.
“Whether or not the ASX200 can carry Friday’s momentum into next week could well hinge on how productive or otherwise the upcoming trade talks between the US and China will be,” Tim Waterer, chief market analyst at KCM Trade, said. Trump has predicted a reduction in tariffs, which could be a boon for Australian stocks, Waterer said.
Financial stocks jumped 1.1%, boosted by a 3.8% gain in Macquarie’s shares to their highest since March 28, after the company beat full-year profit expectations.
Peer Westpac gained 2.3%, breaking a four-day losing streak.
However, it closed 7.2% lower for the week, its worst weekly performance since mid-February.
Banks drag Australian shares lower after ANZ reports flat half-year earnings
Commonwealth Bank of Australia and National Australia Bank ended up 1.2% and 0.9%, respectively, while ANZ Group extended declines, falling 1.4%, after it reported lower-than-expected net interest margins on Thursday.
Tech stocks added 1.8%, tracking a Wall Street rally overnight, and energy firms gained 0.8% on higher oil prices.
In contrast, miners lost 0.7% as iron ore prices fell on prospects of weaker demand in top consumer China.
Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index rose 1.1% to close at 12,605.07 points.
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