* Australia set to record zero COVID-19 cases for second day
* Healthcare stocks post eighth straight weekly loss
* NZ index sees worst weekly loss in 10 months (Updates to close)
By Arpit Nayak
Jan 15 (Reuters) - Australian shares pared early gains to end steady on Friday as investors lapped up U.S. President-elect Joe Biden's plans for a massive stimulus package, though tepid performances in domestic healthcare stocks weighed on the benchmark.
Biden's outline for a $1.9 trillion stimulus package to jump-start the world's largest economy came after U.S. Federal Reserve Chair Jerome Powell said the central bank would not raise interest rates nor reduce bond purchases anytime soon. S&P/ASX 200 index .AXJO rose as much as 0.6% to 6,752.4 before closing flat on Friday, but ended 0.6% lower for the week.
"At the moment, the market continues to push higher as there's more stimulus, lower rates for longer and there is no alternative ... so it's hard to get too bearish," said Henry Jennings, senior analyst at Marcus Today financial newsletter.
Corporate profit and, more importantly, their outlook will be the next factors to look out for, Jennings added.
Sentiment was also lifted as Australia was set to see a second straight day with no local COVID-19 infections, bolstering hopes that states would soon ease virus curbs. .AXMM rose 0.8% as fears of tight supply amid fresh virus curbs in China sent iron ore futures higher. Global miners BHP Group BHP.AX and Rio Tinto (LON:RIO) RIO.AX climbed 1.7% and 0.7%, respectively. IRONORE/
Buy-now-pay-later firm Afterpay APT.AX surged 10% after a strong market debut by a U.S. rival, almost single-handedly helping the tech sub-index .AXIJ end 2.6% higher. the flip side, export-reliant healthcare stocks .AXHJ eased for a fourth session in five as the U.S. dollar weakened on Powell's dovish stance on interest rates. USD/
Weakness in financials .AXFJ , gold .AXGD and consumer stocks offset early gains on the benchmark.
New Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.7% to finish the session at 13,024.69. The index lost 3.9% over the week, its worst since March last year.