Australian shares rise on trade optimism, Macquarie earnings

By Aaditya GovindRao and Kumar Tanishk

May 9 (Reuters) - Australian shares rose on Friday as global trade talks boosted investor sentiment, while Macquarie Group's better-than-expected profit lifted heavyweight banking stocks.

The S&P/ASX 200 index .AXJO was up 0.5% at 8,231.2 points. The benchmark fell 0.1% this week, its first weekly loss since early April.

U.S. President Donald Trump announced a trade deal with the UK on Thursday, the first in a month in since Trump started a 90-day pause on tariffs to allow room for negotiations.

This fuelled hopes of progress in tariff talks with other countries, including China, Australia's biggest trading partner, with negotiations set for Saturday.

"Whether or not the ASX200 can carry Friday's momentum into next week could well hinge on how productive or otherwise the upcoming trade talks between the U.S. and China will be," Tim Waterer, chief market analyst at KCM Trade, said.

Trump has predicted a reduction in tariffs, which could be a boon for Australian stocks, Waterer said.

Financial stocks .AXFJ jumped 1.1%, boosted by a 3.8% gain in Macquarie's MQG.AX shares to their highest since March 28, after the company beat full-year profit expectations.

Peer Westpac WBC.AX gained 2.3%, breaking a four-day losing streak. However, it closed 7.2% lower for the week, its worst weekly performance since mid-February.

Commonwealth Bank of Australia CBA.AX and National Australia Bank NAB.AX ended up 1.2% and 0.9%, respectively, while ANZ Group ANZ.AX extended declines, falling 1.4%, after it reported lower-than-expected net interest margins on Thursday.

Tech stocks .AXIJ added 1.8%, tracking a Wall Street rally overnight, and energy firms .AXEJ gained 0.8% on higher oil prices. .N O/R

In contrast, miners .AXMM lost 0.7% as iron ore prices fell on prospects of weaker demand in top consumer China. IRONORE/

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 1.1% to close at 12,605.07 points.

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