Australian shares end slightly higher as miners limit banks' gains

By Sherin Sunny

May 23 (Reuters) - Australian shares ended slightly higher on Friday, as gains in financials were capped by losses in miners, with investors cautious amid domestic growth concerns and global uncertainty.

The S&P/ASX 200 index .AXJO closed higher by 0.2% at 8,360.9 points. For the week, the benchmark was largely unchanged.

Caution prevailed after Republican-controlled U.S. House voted by a slim margin to pass U.S. President Donald Trump's proposed tax cut bill that could add $3.8 trillion to America's debt.

Meanwhile, domestic economic outlook was clouded by a three-month low Purchasing Manager's Index (PMI) reading on Thursday.

Rate-sensitive financials .AXFJ added 0.5% with the country's "Big Four" banks ending between 0.1% and 0.9%.

The index has added 0.4% in value so far this week buoyed by Reserve Bank of Australia's decision to cut rates by 25 basis points with markets betting on more easing due to the potential impact of global trade-tensions on the local economy.

Real-estate stocks .AXRE followed suit to add 0.8%. The sub-index has advanced over 1% for the week.

The cautious approach by large funds following the RBA decision created some volatility as short-term traders moved in and out quickly, but today's gains in financials and real estate reflect growing conviction in rate-sensitive sectors offering defensive income streams, said Michael McCarthy, chief executive officer of Moomoo Australia.

Meanwhile, uranium miners Paladin Energy PDN.AX, Boss Energy BOE.AX and Deep Yellow DYL.AX rose 5.8%, 4% and 1.2% respectively, after Reuters reported Trump plans to sign executive orders supporting the nuclear energy industry.

New Zealand's benchmark S&P/NZX 50 index .NZ50 ended 0.5% lower. It snapped a three-week winning streak to end 1.5% lower.

The Reserve Bank of New Zealand is expected to lower the cash rate by 25 basis points on May 28, a Reuters poll showed.

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