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Australia shares set with hefty weekly gains, NZ stocks hit record high

Published 04/03/2016, 01:41 pm
Updated 04/03/2016, 01:50 pm
© Reuters.  Australia shares set with hefty weekly gains, NZ stocks hit record high
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By Cecile Lefort and Rebecca Howard

SYDNEY/WELLINGTON, March 4 (Reuters) - Australian shares climbed to a two-month peak on Friday after gains in commodity prices underpinned the mining and financial sectors, while New Zealand stocks struck a record high, yet again.

The S&P/ASX 200 index .AXJO edged up 0.3 percent or 16.4 points to 5,098.1 by 01:45 GMT. The benchmark is up 4.5 percent so far this week and if sustained, it would be the biggest increase in nearly five months.

The next big target is 5,183.63, the 76.4 percent retracement of the January-February move and could open the way to 5,300.

The gains were led by resource stocks after iron ore climbed above $51 a tonne to levels last seen in October.

BHP Billiton (LON:BLT) Ltd BHP.AX put on 2 percent, with investors brushing aside a two-notch credit ratings cut by Moody's. Rio Tinto (LON:RIO) RIO.AX added 1 percent, while Fortescue Metals Group FMG.AX outperformed them both with a jump of 3 percent.

The better mood in markets globally helped the banks with Commonwealth Bank of Australia CBA.AX and Macquarie Group MQA.AX up around 0.8 percent.

Construction material supplier CSR CSR.AX jumped 3.4 percent to touch a one-year peak after it announced a A$150 million share buyback.

The medical and property sectors, however, were out of favour with the ASX 200 A-REIT index .AXPJ off 2 percent and the ASX 200 Healthcare index .AXHJ 1.3 percent lower.

For more individual stocks activity click on STXBZ

New Zealand's benchmark S&P/NZX 50 index .NZ50 hit a record high at 6,423.26 and was poised to show another week of strong gains with a 3.1 percent increase. It is up 1.5 percent so far this year.

As of 0240 GMT, the index stood 0.6 percent, or 39.06 points, higher at 6,419.92 as investors were cheered by a better night on Wall Street.

The biggest gainers included Restaurant Brands RBD.NZ , up 8.6 percent after the company entered a conditional agreement to buy QSR Pty Ltd, an Australian company which owns and operates 42 KFC stores in New South Wales, Australia. Retailer Kathmandu KMD.NZ was trading up 1.9 percent.

The biggest losers included Orion Health Group OHE.NZ , down 3.2 percent and Skellerup SKL.NZ , down 0.8 percent.

(Editing by Simon Cameron-Moore)

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