SYDNEY/WELLINGTON, July 15 (Reuters) - Australian shares rose for a seventh consecutive session on Friday, driving the index to an 11-month high, while New Zealand stocks again reached record levels.
The S&P/ASX 200 index .AXJO was higher 0.39 percent, or 19.19 points, at 5,430.80 by 0200 GMT. The benchmark has gained 4 percent this week, and is at its highest level since August 2015.
"The predominant theme in the market this morning is one of increasing confidence, particularly within the banking and energy sectors," said Gary Huxtable, a client adviser at Atlantic Pacific Securities.
"The confidence stems from the expectations that the Reserve Bank is open to further monetary stimulus beyond rate cuts."
The Reserve, Australia's central bank, meets on Aug. 2 to set monetary policy and inflation data due next Wednesday will provide a clue as to its next move.
Gains on the Australian bourse were mirrored in New Zealand and across Asia, as a rally on Wall Street offset the impact on sentiment of an attack in France. stocks, led by JPMorgan (NYSE:JPM), overnight led the S&P 500 .SPSY and the Dow Industrials .DJI indexes to record highs. the Australian index, BlueScope Steel Ltd's BSL.AX shares rose as much as 8 percent after hitting a five-year high in the previous session on earnings upgrade. Coal Ltd's WHC.AX shares surged 10 percent on news of record coal shipments, and that the company is on target to reach its profit guidance.
Financial stocks posted broad gains, with Macquarie Group Ltd MQG.AX adding 2.4 percent, Westpac Banking Corp WBC.AX gaining 1.5 percent and Commonwealth Bank CBA.AX , Australia and New Zealand Banking Corp ANZ.AX and National Australia Bank Ltd NAB.AX all adding more than 1 percent.
Defensive shares edged lower, with Newcrest Mining Ltd NCM.AX falling 2.7 percent and Telstra Corp Ltd TLS.AX slipping 0.26 percent.
New Zealand's benchmark S&P/NZX 50 index .NZ50 remained at a record high on Friday, rising 0.25 percent to 7,098.30, as investors were cheered when financial stocks led the S&P 500 and the Dow industrials to new highs.
Among the biggest gainers, Xero XRO.NZ rose 2.1 percent and Stride Stapled SPG.NZ gained 1.5 percent.
Bucking the trend, Comvita CVT.NZ shed 1.3 percent.
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