Australia Shares End Firmer, Paring the Week's Fall

   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 [e-mail]