Australian shares snap losing streak as miners lead recovery

By Roushni Nair

March 14 (Reuters) - Australian shares closed higher on Friday, snapping a three-day losing streak, as heavyweight miners powered gains a day after the market confirmed a correction, with investors still cautious amid escalating global trade tensions.

The S&P/ASX 200 index .AXJO, which has clocked only five positive sessions in the last 20 trading days, rose 0.5% to 7,789.7 points. The index dropped 10.1% on Thursday from its February 14 record peak, officially confirming a correction.

The benchmark has lost 2.5% so far this week, set for its fourth consecutive weekly loss.

Jessica Amir, market strategist at Moomoo Australia, suggested markets could recover similar to 2018-2019 during the last U.S.-China trade war, anticipating some profit-taking in the session on Friday.

"Investors who bought into the ASX200 after the index fell 15% from its 2018 peak were rewarded as the market recovered within three months to hit a record high," Amir said.

Miners .AXMM led the gains, rising more than 2%, with ASX-listed shares of Patriot Battery Metals PMT.AX topping the charts, up 9%.

Financials .AXFJ closed flat, although the sub-index touched a six-month low earlier in the day, marking its ninth straight session of losses.

The sector's decline has driven much of the benchmark's fall since February, as inflated valuations and underwhelming corporate updates eroded investor confidence.

Meanwhile, real-estate stocks .AXRE added 0.2%. The sub-index, however, has lost more than 13% from its September peak.

The sell-off stems from trade policy uncertainties and rising inflation expectations, according to Citi analysts.

New Zealand's benchmark S&P/NZX 50 index ended 0.5% higher at 12,266.25 points.

      

      
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