By Reuters

Copyright brecorder

Australian shares rose on Friday, supported by gains in financial and mining stocks, as upbeat US economic data lifted hopes for a Federal Reserve interest rate cut, though the benchmark index headed for a second straight weekly loss.

The S&P/ASX 200 index rose 0.8% to 8,874.30, as of 0038 GMT.

The benchmark was on track to log its second consecutive weekly loss, down 0.7% this week. The index ended 0.3% lower on Thursday.

US inflation and jobless claims data fuelled expectations that the Fed could cut rates as early as next week, boosting consumer sentiment and spilling over into gains in the domestic equity market.

Back in Sydney, miners gained 0.9%, riding on higher copper prices.

The sector was set to lose 1.5% this week, its worst week since August 1. On Friday, mining giants BHP Group added 1%, while Rio Tinto rose 0.5%.

Financials gained 1%, hitting a one-week high, with the “Big Four” banks rising around 1% each. Banks, however, have fallen 0.7% for the week, set for their third consecutive week of losses.

The financial sector has come under pressure recently, with investors pulling out of banks due to concerns over high valuations.

Sentiment has also been weighed down by layoff announcements from three banks, including two of the Big Four.

Gold stocks rose 1%, hitting a record high.

The sub-index has gained 4% this week.

Health stocks rose 0.9%, while technology stocks gained 1.3%. Energy was the sole sector to trade in the red, falling 1.5%, tracking weaker global oil prices.

The sector has lost 2% so far this week, set to log its second consecutive weekly loss.

Meanwhile, New Zealand’s benchmark S&P/NZX 50 index traded largely flat at 13,249.42.