CANBERRA: Australian shares rose for a third-straight session on Friday, with financial leading broad gains as global equities firmed after weak US data dented the chances of an interest rate hike by the Federal Reserve next week. US August retail sales fell more than expected amid weak purchases of automobiles and a range of other goods. Other data on Thursday showed a drop in US manufacturing output last month.
The reduced likelihood of a Fed hike next week meant global liquidity will remain relatively flush for a longer period, bolstering riskier assets. The S&P/ASX 200 index finished 1.1 percent or 56.84 points higher at 5,296.7. Despite the gains, the benchmark failed to avoid a fifth-straight weekly loss. The ‘Big Four’ banks gained between 1 percent to 1.1 percent. New Zealand’s benchmark S&P/NZX 50 index snapped six-straight sessions of losses to rise 0.8 percent, or 54.27 points, ending at 7,250.51. The benchmark lost 2.9 percent on the week in its biggest weekly loss since February. “It (the climb in Australian markets) provides pretty clear evidence, if that was needed, that next week’s central bank meetings, particularly the Fed meeting, are dominating the short-term market thinking,” said Ric Spooner, chief market strategist at CMC Markets.
Investor sentiment also took a hit from other data on Thursday showing a drop in US manufacturing output last month. The Swiss National Bank and the Bank of England on Thursday held interest rates steady. Financial stocks accounted for nearly half of the gains on the Australian benchmark. The ‘Big Four’ banks gained 1 percent to 1.5 percent in early trading. Coal miner Whitehaven Coal was the biggest percentage gainer on the index, rising as much as 8.5 percent to hit a more than 3-year high. Energy stocks rose more than 2 percent as oil prices climbed overnight. Oil explorer Woodside Petroleum jumped more than 1 percent, while Santos Ltd snapped eight-straight sessions of losses to rise 5 percent.
Mining giant BHP Billiton extended gains to rise 1 percent and Fortescue Metals Group gained 2 percent. Shares in Telstra Corporation Ltd, Australia’s largest telecom company, advanced more than 1 percent. New Zealand’s benchmark S&P/NZX 50 index snapped six-straight sessions of losses to rise 0.8 percent, or 58.3 points, to 7,254.54. Telecoms, industrials and utilities pushed the index higher. Consumer confidence in New Zealand rose in September to its highest level since January, a survey showed. Skycity Entertainment Group and Spark New Zealand Ltd both advanced 2 percent. Power generation company Meridian Energy Ltd was among the top percentage gainers on the benchmark, climbing more than 3 percent to record its biggest intra-day percentage rise since June.
