(Updates to close)
Nov 11 (Reuters) - Australian shares closed higher on Friday, with financial stocks leading gains, as investors found grounds for optimism among some of President-elect Donald Trump's economic policies.
The S&P/ASX 200 index .AXJO ended 0.8 percent higher at 5,370.7. The index snapped four weeks of losses to rise 3.7 percent this week.
Financials gained, in line with the U.S. financial sector .SPSY overnight, which surged to its highest since the 2008 global financial crisis, as investors turned their focus on Trump's likely priorities which include bank deregulation. MKTS/GLOB
The "Big Four" banks were the top contributors to the main index rising between 2.6 percent and 4.2 percent. Commonwealth Bank of Australia CBA.AX rose to its highest in nearly three months.
The benchmark financials index .AXFJ was up about 3 percent, hitting its highest in more than two weeks.
Australia's metals & mining index .AXMM rose 0.9 percent as iron ore prices rose on an optimistic outlook for Chinese steel demand, and copper edged back. IRONORE/ MET/L
Fortescue Metals Group Ltd FMG.AX surged 4.5 percent to hit its highest in over five years.
BHP Billiton (LON:BLT) Ltd BHP.AX and Rio Tinto (LON:RIO) Ltd RIO.AX were up more than 2 percent.
New Zealand's benchmark S&P/NZX 50 index .NZ50 reversed early gains to fall 0.5 percent and close at 6,697.78. The index closed 0.2 percent lower on the week, its sixth consecutive fall.
Industrials and telecom stocks were the biggest drag on the index, with Auckland International Airport Ltd AIA.NZ falling over 3 percent to its lowest in more than 4 months.
Spark New Zealand Ltd SPK.NZ fell for a third straight session to close at its lowest since June 9.