Australian shares snap three-day losing streak on commodities boost

Australian shares snapped a three-day losing streak on Friday, buoyed by gains in mining stocks, on hopes that easing COVID-19 restrictions in China would boost global demand and growth outlook.

The S&P/ASX 200 index XJO jumped 0.5% to 7,213.2, but had its worst week since Oct. 21. The benchmark has fallen 3.1% so far this year, after ending 13% up last year.

China loosened its domestic COVID-19 curbs earlier this month following civil unrest, raising hopes that the move could reinvigorate its sagging economy and spur demand, although challenges from aggressive interest rate hikes and soaring inflation still persist.

"If China can shift to a path of stronger economic momentum, it will be a positive for the wider Asia region as improving Chinese consumer spending partially offsets softness in Asia exports to the west," said Kerry Craig, global market strategist at J.P. Morgan.

However, "the path to a fully open Chinese economy will be bumpy if the experience of other countries easing COVID restrictions is any guide," Craig flagged.

In Australia, miners XXMM advanced 2% to be the top gainers on the bourse, as data showed an increase in China's iron ore imports, suggesting rising demand by the world's largest steel maker.

Sector behemoths Rio Tinto RIO, BHP Group BHP and Fortescue Metals Group FMG added between 2.3% and 2.8%.

Gold stocks XGD climbed 0.8% after prices ticked up, helped by a softer dollar.

Newcrest Mining (NCM.AX) and Northern Star Resources NST gained 0.8% and 25, respectively.

Meanwhile, local energy stocks XEJ fell 0.2% as oil prices hovered around December 2021 lows on concerns over slowing global demand growth.

Woodside Energy WDS and Santos STO fell 0.8% and 0.4%, respectively.

Financials XFJ fell 0.2%, dragged by a 0.4% drop in Commonwealth Bank of Australia CBA, even as three out of the "big four" Aussie banks gained between 0.2% and 0.6%.

New Zealand's benchmark S&P/NZX 50 index NZ50G dropped 0.2% to finish the session at 11,596.03.