(Updates to close) Australian shares snapped a three-session losing streak on Friday as retail giant Wesfarmers soared after announcing plans to spin off its Coles supermarket division, but broader gains were capped by further weakness in banks.
The S&P/ASX 200 index .AXJO closed 0.5 percent higher or 28.6 points at 5949.4, but finished the week down 0.2 percent.
The benchmark fell 0.2 percent on Thursday.
Investors flocked to Wesfarmers' WES.AX stock after it announced plans to spin off its Coles supermarket, which earns far less than it costs to run, and list it on the Australian Securities Exchange. shares gained as much as 7.4 percent at one point and ended 6.3 percent higher at its best in over a month, while rival Woolworths WOW.AX rose 1.3 percent.
Adding to the sector's cheer, fashion retailer Premier Investments PMV.AX rose 6.1 percent to its highest since October 2016 after reporting a 9.4 percent rise in first-half profit. stocks also buoyed the index, riding on strong metal prices, with the mining index .AXMM gaining 1 percent, its best close in a week.
Top miners BHP Billiton (LON:BLT) BHP.AX and Rio Tinto (LON:RIO) RIO.AX rose 1 percent and 0.7 percent, respectively. IRONORE/
South32 Ltd S32.AX rose 5.6 percent after Credit Suisse (SIX:CSGN) upgraded the stock to "neutral" from "underperform".
However, an index of financial stocks .AXFJ fell for the fourth straight session amid a government backed inquiry into the sector.
The "Big Four" banks fell between 0.1 and 0.6 percent. The hearing on Thursday revealed Commonwealth Bank of Australia CBA.AX knew that a system of financial incentives to reward mortgage brokers could hurt customers but failed to act. and New Zealand Banking Group ANZ.AX said it will suspend its retail asset finance business in Australia while it undertakes a review. the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 reversed early losses to close at a record, and ended its second straight week higher.
Healthcare and consumer discretionary stocks accounted for most of the gains on the index.
Fisher & Paykel Healthcare Corporation Ltd FPH.NZ was the biggest contributor to the index, closing 1.2 higher.
Construction firm Fletcher Building Ltd FBU.NZ surrendered early gains to close 0.3 percent lower after issuing shares to certain executives.