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Australia shares make modest gains on oil, NZ firmer

Published 12/08/2016, 01:07 pm
Updated 12/08/2016, 01:10 pm
© Reuters.  Australia shares make modest gains on oil, NZ firmer
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SYDNEY/WELLINGTON, Aug 12 (Reuters) - Australian shares were slightly firmer on Friday as a bounce in oil prices aided the energy and commodity sector, though disappointing economic data from China took the shine off a record finish on Wall Street.

The S&P/ASX 200 index .AXJO added 0.17 percent, or 9.4 points, to 5,517 by 0245 GMT.

That left the market up 0.4 percent for the week, a modest performance given it was a week after the Reserve Bank of Australia (RBA) cut interest rates to a record low of 1.5 percent.

The market had started well enough after all three major U.S. stock indexes ended Thursday at record highs for the first time since 1999.

A 4 percent rally in oil prices helped the energy sector put on 0.7 percent, with Santos adding 3.3 percent STO.AX .

Data out of China was not so supportive with retail sales, industrial output and property investment all missing forecasts. China is Australia's single biggest trade customer taking a third of its exports.

Westpac Banking Corp WBC.AX extended its recent decline, falling 1.7 percent to a four-week trough in the wake of an earnings update that showed shrinking revenue from markets and rising funding costs.

Brokerage Bell Potter cut its price target for the bank, while Morningstar cut its fair value estimate.

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New Zealand's benchmark S&P/NZX 50 index .NZ50 tracked global equities markets and rose 0.2 percent or 19.72 points to 7,373.55 on Friday.

The index was poised for a weekly rise of 0.9 percent, back on a winning streak after a loss the previous week.

Steel & Tube STU.NZ led gains, rising 4.7 percent, after the steel goods manufacturer posted a 20 percent rise in full-year profit and said it was optimistic the company's performance would be stronger the next year. company Synlait Milk SML.NZ rose as much as 5.7 percent, after announcing an upbeat profit forecast based on strong milk formula sales. company A2 Milk ATM.NZ rose 2.9 percent, while shares in Fonterra's FCG.NZ fund FSF.NZ , which provides investor exposure to the farmer-owned dairy exporter, were up 0.3 percent. (Editing by Sam Holmes)

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