(Reuters) - Australian shares advanced on Friday, as an apparent thaw in the drawn-out Sino-U.S. trade dispute and strong U.S. economic data supported appetite for riskier assets.
The S&P/ASX 200 index <.AXJO> rose 0.4% to 6,641 by 0211 GMT. The benchmark rose 0.9% on Thursday, and was poised to record a third straight weekly gain.
Markets around the globe cheered news that the United States and China would hold high-level talks in early October in Washington, following weeks of uncertainties triggered by a deepening trade war.
Investors were also encouraged by surveys that showed U.S. private payrolls and the services industry rebounding last month.
Tech stocks <.AXIJ> dominated gains on the benchmark index, tracking their U.S. peers, surging as much as 3.3% to a record peak. Sector heavyweights WiseTech Global <WTC.AX> and Computershare Ltd <CPU.AX> climbed between 1% and 2.9%.
Rare earths producer Lynas Corp <LYC.AX> jumped 5.6%, and was the top performer on the benchmark stock index, after it signed an agreement with a city in Western Australia to explore a potential initial ore processing site.
Continued strength in iron ore futures supported gains in the metals and mining sector <.AXMM>, which heavily export to China.
Global mining giant Rio Tinto <RIO.AX> added 1.1%, while Fortescue Metals Group <FMG.AX>, the world's fourth-largest iron ore miner strengthened 3.3% to an over 1-month high.
Financial stocks <.AXFJ> gained 0.7%, with top lenders Commonwealth Bank of Australia <CBA.AX> and National Australia Bank <NAB.AX> rising between 0.4% and 0.8%.
Gains in Westpac Banking Corp <WBC.AX> were however limited, after it was hit with a class action lawsuit filed against its life insurance and pension unit, which it said it would defend itself against.
Safe-haven gold stocks <.AXGD> slumped 3.1%, marking its worst day in over a week, as a risk-on mode dented bullion prices.
Gold miners Evolution Mining <EVN.AX> and Saracen Mineral Holdings <SAR.AX> fell 3.2% and 6%, respectively.
Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index <.NZ50> rose 1% to 11,213, and was on track to record a second consecutive weekly gain.
Dairy firm Synlait Milk <SML.NZ> and Auckland International Airport <AIA.NZ> gained 3.8% and 2.5% respectively.
Meanwhile, shares of Fonterra <FCG.NZ> <FSF.NZ> fell 0.6%, after it sought more time to finalise its annual results, adding to uncertainty around the dairy giant's outlook.
(Reporting by Shriya Ramakrishnan in Bengaluru; Editing by Sam Holmes)
