Australia: Shares snap four-week winning run, gold stocks lose shine

[BENGALURU] Australian shares ended marginally higher on Friday but recorded their first weekly loss in five, as a possible capital gains tax hike in the United States and surging coronavirus cases in parts of the world subdued risk sentiment.

The S&P/ASX 200 closed 0.08 per cent higher at 7,060.70 points. The benchmark edged 0.04 per cent lower for the week.

US stocks dived overnight on reports President Joe Biden planned to almost double the capital gains tax, though broader Asian equities managed to shake off initial losses amid a lack of other major news.

"There is no talking point for share movement in the market," said Dale Raynes, associate director at CPC Capital, adding there was a lack of direction following the index's bounce on Thursday.

Rising coronavirus infections in major economies like India have dented hopes of a global economic rebound and partly led to losses in Australian equities this week.

A man in Australia tested positive for Covid-19 on Friday after finishing his hotel quarantine, raising concerns about community transmission as more virulent virus strains emerge.

Gold stocks lost 0.4 per cent, recording their biggest intraday percentage loss since April 15.

Newcrest Mining was down 0.9 per cent and Northern Star Resources fell more than 1 per cent each.

"There was a big run in gold stocks yesterday, so maybe a little bit of profit taking is going on in those stocks," Mr Raynes said.

Financial stocks rose 0.4 per cent. Platinum Asset Management gained 2.3 per cent and Bank of Queensland added 1.6 per cent.

Embattled wealth manager AMP rose as much as 7.5 per cent after it ended talks to sell its asset management arm's private markets business to Ares Management, and said it will spin off and re-brand the unit.

New Zealand's benchmark S&P/NZX 50 rose 0.6 per cent to 12650.64 points, but still finished the week 0.3 per cent lower.

REUTERS