- RBA chief says won't dismiss rate rise prospect
- Banks and consumer shares lead gains
- Coal miners down on China trade scare
- NZ unchanged but up 0.7 pct on week
(Updates to close)
Feb 22 (Reuters) - Australian shares ended higher on Friday as a signal from the central bank that the next move in interest rates could be well be an increase helped financial stocks notch a second day of gains, offsetting declines in commodity-backed shares.
The S&P/ASX 200 index (xjo) rose 0.46 percent to 6,167.30 at the close of trade. On the week, it gained about 1.7 percent.
Speaking a day Australia posted reported robust jobs data, the Reserve Bank of Australia Governor Philip Lowe said the next move in rates could be upwards, while giving a reassurance that a steep property downturn was unlikely to derail domestic momentum.
Financial stocks reacted positively, with the country's biggest lender Commonwealth Bank (CBA) ending the day over 1 percent higher, while Australia and New Zealand Banking Group (ANZ) climbed 0.7 percent.
The other two 'Big Four' banks, Westpac (WBC) and National Australia Bank (NAB) , ended flat.
Consumer-focused shares were also among the top advancers, with conglomerate Wesfarmers (WES) up for a second straight session, while the country's biggest retailer Woolworths (WOW) rallied 1.1 percent.
Its rival Coles (COL) closed about 1.7 percent higher. However, overall gains were capped by commodity-driven sectors' lacklustre performance.
The Australian mining index .AXMM fell 0.2 percent, pulled down by heavyweight BHP Group's (BHP) 0.4 percent decline.
Also casting a cloud over sentiment was a Reuters report on Thursday that customs at China's Dalian port banned imports of Australian coal and would cap overall coal imports from all sources.
The report knocked coal miners Stanmore Coal (SMR) and New Hope Corp (NHC) 2 percent and 3.6 percent lower.
Synlait Milk Ltd (SML) led gains in New Zealand, rising 3.3 percent and boosting the consumer staples sector.
Utilities were the top gaining sector on the main board with electricity generator Meridian Energy (MEL) closing 2.2 percent higher.
However, gains elsewhere were offset by declines in energy and telecom shares.
New Zealand's benchmark S&P/NZX 50 index (nz50) was little changed on the day but closed the week up 0.7 percent.
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News: WOW Banks, consumer shares pull Australia's main index higher, NZ flat
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Price($) | Vol. | No. |
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