(Updates to close)
Nov 1 (Reuters) - Australian shares ended higher on Friday, but a sell-off in banks this week dragged the benchmark to its first weekly loss in three.
Financials .AXFJ , supported by the 'Big Four' banks, are the largest component of the S&P/ASX 200 index .AXJO and have fallen every day this week.
Though the benchmark added nearly 6 points, or 0.1%, to close at 6,669.1 on Friday, it is set to drop 1% over the week.
The sector suffered sharper losses after Australia and New Zealand Banking Group ANZ.AX , the country's fourth-largest, on Thursday missed estimates and reported a near 3% drop in its second-half cash profit amid record low interest rates and tough competition for home loans. other of the so-called 'Big Four' are set to report their results over the next two weeks. National Australia Bank NAB.AX and Westpac Banking Corp WBC.AX will report next week, and the country's top lender Commonwealth Bank of Australia CBA.AX , the week after.
On Friday, ANZ fell the most, down 2.1%, while the other three lost between 0.5% and 1.2%. Group MQG.AX closed 0.3% higher after posting a record first-half profit, but forecast a weaker annual result. strength in gold stocks and energy firms supported minor gains on the benchmark.
Woodside Petroleum WPL.AX , the country's top oil and gas producer, rose 0.8%, while Beach Energy BPT.AX climbed 2.6% as oil prices rose.
Worries over global economic growth, and whether a U.S.-China trade deal will ever get signed supported safe-haven buying of gold. The Australian gold sector .AXGD was the biggest gainer.
Later on, an unexpected bounce in factory activity in China, which showed it expand at its fastest pace in more than two years, helped soothe concerns.
New Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.2% to 10,761.69.
ANZ's local unit ANZ.NZ was among the worst percentage losers, falling 1.7%.