Australia: Shares track Wall Street to end higher

[SYDNEY] Australian shares ended higher on Friday, led by gains in banks and energy stocks, tracking an overnight Wall Street rebound, but the benchmark index posted its biggest weekly drop in 11 weeks.

The S&P/ASX 200 index ended 0.5 per cent higher at 7,014.2, after three days of heavy losses. For the week, it ended 0.9 per cent lower, its biggest weekly drop since Feb 26.

After inflation fears led to volatility all week in markets, global equities took cues from the Wall Street to march higher, with investors buying back growth stocks.

Australia's heavyweight financial subindex ended nearly 1 per cent higher, with top lender Commonwealth Bank of Australia hitting a record high.

"Last night's US rebound was led by financials. ..that seems to be reflected in the ASX," said Brad Smoling, managing director at Smoling Stockbroking.

"Even if we do have inflationary issues, financials are perceived to be the ones that will still be okay." Lender Westpac, Australia and New Zealand Banking Group and National Australia Bank ended up between 0.9 per cent and 1 per cent.

Energy stocks led gains on the benchmark, finishing 1.7 per cent higher after shedding nearly 2 per cent over the week.

New Zealand's benchmark S&P/NZX 50 index ended 0.5 per cent lower at 12,367.86, falling for an eighth straight session and posting its worst weekly performance since Feb 12.

REUTERS