Australia: Energy stocks, upbeat China data buoy Aussie shares

[BENGALURU] Australian shares ended higher on Friday as energy stocks advanced on higher oil prices following a US airstrike in Iraq, with signs of growth in China adding to the gains.

Stocks, however, pulled back from session highs as the airstrike that killed a key Iranian personnel heightened geopolitical tensions.

Resources stocks recorded big gains, with energy shares rallying 1.7 per cent to their highest in more than two weeks, as oil prices soared on concerns of a supply disruption following the airstrike.

The S&P/ASX 200 index closed 0.6 per cent firmer at 6,733.5, after ending 0.1 per cent higher on Thursday. The benchmark fell 1.3 per cent this week to mark its first weekly loss in three.

Oil and gas major Woodside Petroleum Ltd ended 0.9 per cent higher, while Oil Search Ltd jumped 3.2 per cent.

Sentiment got a further boost after a private survey on Thursday revealed that Chinese production activity in December continued to grow and business confidence had strengthened, hinting at a recovery in the economy in the wake of a Phase 1 trade deal with the United States.

The Chinese central bank's decision to lower the amount of cash that all banks must hold as reserves in a bid to free up billons of dollars also lifted the mood.

Aussie miners advanced 0.7 per cent on firm iron ore prices. The sub-index declined 0.5 per cent this week after three consecutive weekly gains.

Anglo-Australian miner BHP Group advanced 0.5 per cent to post its best session in a week, while peer Rio Tinto rose 0.2 per cent.

A rally of 1.9 per cent in the gold index also boosted the benchmark.

Heavyweight financial sub-index also added to gains as they rose 0.7 per cent. All components of the "Big Four" banks closed in the black.

Meanwhile, New Zealand's benchmark S&P/NZX 50 index ended up 0.9 per cent at 11,555.97 after markets resumed trade following two days of holidays.

Auckland International Airport Ltd and Ryman Healthcare Ltd underpinned the gains in the index.

The benchmark lost 0.1 per cent for the week.

REUTERS