Australia: Shares edge lower; post weekly gain on US stimulus plan

[SYDNEY] Australian shares eased slightly after three sessions of gains on Friday, but ended the week 1.3 per cent higher as investor confidence improved on US President Joe Biden's fiscal stimulus plans.

For the session, the benchmark S&P/ASX 200 index ended 0.3 per cent lower.

"I don't know right now if the equity markets are stalling or they are waiting for all the dust to settle from the change of power in the United States. It might turn out to be both,"said Brad Smoling, managing director at Smoling Stockbroking.

He, however, warned that possible pushback to Mr Biden's US$1.9 trillion stimulus proposal or major policy changes by the new US administration through executive orders without warning could be a catalyst for an equity sell off.

Data showed Australian retailers suffered their biggest sales drop in eight months in December as consumers brought forward their Christmas shopping, but analysts said the drop was largely expected and not a concern as outlook remained strong.

New Zealand's benchmark S&P/NZX 50 index rose 1.7 per cent to finish at 13,333.43 and was up 1.7 per cent for the week. Power companies Meridian Energy and Mercury NZ were among top gainers for the session.

REUTERS