(Reuters) - Australian shares climbed more than 1% on Friday, led by gains in miners and banks as investors were cheered by signs of a thaw in stalled Sino-U.S. trade talks.
Australia's S&P 200 index <.AXJO> closed higher for a second straight week. It climbed 1.5%, or 96.8 points, to end at 6,604.2 on the day.
China's commerce ministry said a September round of meetings was being discussed with Washington, but added it was important for Washington to cancel a tariff increase. [MKTS/GLOB]
Investors also looked to China's official manufacturing survey, expected over the weekend, which would provide a good gauge of the real impact from the Sino-U.S. trade war.
However, Australia's benchmark saw its worst monthly loss since October and fell over 3% in August, a month dominated by several trade war flare-ups and global recessions fears.
Positive trade salvo helped mining stocks <.AXMM> tack on 1.6% for the day.
Resources, especially iron ore, is the top revenue-earner for Australia as China is the biggest buyer of these exports. The country's commodities firms are thus sensitive to developments in U.S.-China trade talks.
Iron ore miners BHP Group Ltd <BHP.AX>, Rio Tinto <RIO.AX> and Fortescue Metals <FMG.AX> rose between 2.2% and 4.2%.
Heavyweight banking stocks <.AXFJ> led gains on the main index, with the "Big Four" notching up between 1% and 2.1%.
High-growth technology units <.AXIJ> also ended nearly 2%higher, mirroring trade-sensitive Wall Street peers. [.N]
Buy-now-pay-later firm Afterpay Touch Group Ltd <APT.AX> closed at a record high, after stellar U.S. growth numbers it posted this week provided added impetus.
Blue-chip healthcare stocks also benefited from improved risk sentiment, with biotherapeutics firm CSL Ltd <CSL.AX> and hearing implant maker Cochlear Ltd <COH.AX> jumping 2.3% and 2.2%, respectively.
While signs of easing trade tensions placated recession fears, it weighed on the safe-haven appeal of gold stocks <.AXGD> and sent them 0.9% lower, the only sector that ended in the red.
Gold miner Evolution Mining <EVN.AX> declined 1%.
Across the Tasman Sea, New Zealand's benchmark index <.NZ50> surged 1.7%, or 177.13 points, to 10,757.2. It added 1.3% this week, its best weekly gain since late June.
Vista Group International Ltd <VGL.NZ>, a software developer for the film industry, added 4.9% and was the top gainer on the benchmark.
(Reporting by Devika Syamnath in Bengaluru; Editing by Jacqueline Wong)
