By Robb M. Stewart
SYDNEY, Australia--Australian shares perked up for a second
straight day Friday to pare the week's decline as sentiment was
bolstered by a strong reading on the U.S. labor market that helped
calm worries about the world's biggest economy.
Markets across Asia firmed on the heels of strong gains on Wall
Street and the European Central Bank's decision to opt against
further stimulus, a positive signal for international growth.
However, some traders warned there remained some caution ahead
of key U.S. nonfarm payrolls data later in the global day and
earnings results due next week from Australian heavyweights
Commonwealth Bank of Australia, BHP Billiton and Rio Tinto.
The S&P/ASX 200 finished the day up 0.7% at 5166.5, buoyed
by energy stocks, with support from mining and financial shares.
That left the benchmark index down almost 0.5% for the week.
Across the wider market, about 2 billion shares changed hands
worth 5.2 billion Australian dollars (US$4.6 billion), Commonwealth
Securities analyst Juliette Saly said.
Aurora Oil & Gas outperformed the market, rallying 56% after
receiving a A$1.8 billion takeover offer from Baytex Energy.
Several energy names also made strong gains, including AWE and
Sundance Energy, which both rose 11%. Woodside Petroleum bucked the
trend, easing 0.1% after it said it expected to pay more than
previously planned for a smaller stake in a gas field off
Israel.
Iron-ore producers BHP Billiton, Rio Tinto and Fortescue Metals
advanced between 0.5% and 3.1%, while gold mining company Newcrest
Mining picked up 2%.
The country's largest banks were in positive territory, led by a
1.4% gain in Westpac Banking.
Shane Oliver, head of investment at AMP Capital, said a mix of
improved company valuations and more subdued investor sentiment
suggest the recent fall in equity markets had bottomed out. He has
forecast the ASX 200 to rise to about 5800 by the end of the year,
although not without volatility along the way.
Write to Robb M. Stewart at robb.stewart@wsj.com
