Australia: Shares rise on easing virus curbs, US-China trade talks

[SYDNEY] Australian stocks ended higher on Friday, marking their second straight weekly gain, after the government unveiled plans to end most coronavirus restrictions by July and as talks between US and Chinese trade officials lifted sentiment.

The S&P/ASX 200 index settled 0.5 per cent higher at 5,391.1. The benchmark climbed nearly 3 per cent this week, its biggest weekly rise since April 10.

Mining stocks underpinned the gains on Friday as Chinese iron ore prices scaled a nine-month peak. Fortescue Metals Group, the world's no 4 iron ore miner, jumped 5.5 per cent - the most in more than a month.

"Australia, being a net exporter, performs better when economic activity is thriving and positive trade is a good sign for economic activity," said James Tao, market analyst at CommSec.

Top US and Chinese trade representatives discussed their Phase 1 trade deal earlier in the day, with China - Australia's largest trading partner - saying it would work with Washington to improve the atmosphere for implementing the Phase 1 trade deal signed this year.

Meanwhile, hopes for an economic recovery at home got a boost from Prime Minister Scott Morrison's plan to ease social distancing restrictions in a three-step process, which would remove all curbs by July and get nearly 1 million people back to work amid a decline in coronavirus cases.

The financial index closed nearly 1 per cent higher, as it got some relief after the government said it would defer by six months the implementation of recommendations in an inquiry that revealed widespread misconduct in the sector.

In New Zealand, the benchmark S&P/NZX 50 index finished 0.4 per cent higher at 10,695.59. The New Zealand benchmark rose about 2.4 per centthis week, its second straight weekly rise.

REUTERS