Updates to close
ASX 200 benchmark logs best week since mid-Dec 2023
Bank stocks rise 1.3%, miners gain 0.9%
Big Four banks set to report HY results next week
Australia goes to polls this weekend
By Sneha Kumar
May 2 (Reuters) - Australian shares tracked global markets to end higher on Friday, with all sectors in green, as signs of possible easing in trade tensions between the U.S. and China buoyed risk sentiment.
The S&P/ASX 200 benchmark index rose 1.1% to close at 8,238, gaining for a seventh straight session. It advanced 3.4% for the week - its best weekly performance since mid-December 2023.
Global markets rejoiced after China said the U.S. has repeatedly signalled a willingness to on tariffs, and that Beijing remains open to talks.
Possible U.S.-China trade talks drove gains on the local benchmark, IG analyst Tony Sycamore said.
"While it would be positive to see the U.S. tariff rate on Chinese imports fall... this still leaves them at a growth-stifling high rate, which suggests the ASX200's exuberance this week may be somewhat premature."
China is Australia's largest trading partner.
Sentiment was also supported by heightened prospects of an interest rate cut by the Reserve Bank of Australia, after data showed that the country's first-quarter slowed.
Rate-sensitive banks jumped 1.3%, closing at a near 2-1/2-month high. The "Big Four" banks rose between 1.4% and 2.1%, respectively.
With the exception of top lender Commonwealth Bank of Australia , three of the top four are scheduled to report their half-year next week amid looming rate cuts, persistent inflation concerns and rising mortgage stress.
Miners climbed 0.9%, with BHP , Rio Tinto and Fortescue gaining between 0.7% and 1.1%.
Healthcare stocks rose 1.9%, while energy and gold stocks added 2% and 0.9%, respectively, on strong underlying prices.
Australia goes to the in a tight race between the incumbent Labor government and the Liberal National opposition, which could result in a hung parliament.
Meanwhile, New Zealand's benchmark S&P/NZX 50 index rose 1.5% to end at 12,327.89.
(Reporting by Sneha Kumar in Bengaluru; Editing by Rashmi Aich)
((sneha.kumar@thomsonreuters.com [sneha.kumar@thomsonreuters.com]))
