(Reuters) - Australian shares closed at their highest since late 2007 on Friday, and produced a large weekly gain as monetary policy easing and stronger commodity prices pushed up stocks across the board.
The S&P/ASX 200 index <.AXJO> rose 0.5% or 33.30 points to 6,751.30 at the close. The benchmark added 2% for the week, and was about 100 points off a record high reached in 2007.
Financials and real estate stocks lent most support to the benchmark. Three of the Big Four banks advanced, with Commonwealth Bank of Australia <CBA.AX>, the largest lender, leading with a 0.9% gain. ANZ <ANZ.AX> had a marginal loss.
Finance stocks were cheered by the country's prudential regulator loosening mortgage lending rules just a few days after the Reserve Bank of Australia cut interest rates for the second month in a row. Weak economic data has also seen increased bets for further easing later in the year.
Real estate stocks such as Dexus <DXS.AX>, Scentre Group <SCG.AX> and Goodman Group <GMG.AX>, which rose through the week, gained between 1.9% to 2.2% on Friday.
Corporate services provider Eclipx Group <ECX.AX> was the day's largest gainer on the ASX 200, closing more than 20% higher after it announced the sale of two e-commerce portals.
Mining stocks saw some profit-taking after a strong series of gains on robust commodity prices. The mining subindex <.AXMM> closed 1.2% lower on Friday, but for the week had a fourth straight rise.
New Zealand stocks rose 0.5% to a fourth consecutive record close. Support came chiefly from the local stocks of Australian banks and heavyweight utility stocks.
The benchmark S&P/NZX 50 index <.NZ50> climbed 0.5% or 57.19 points to finish the session at 10,615.47. It added 1.1% for the week, its fourth straight week of gains.
The local stock of Westpac Banking Corp <WBC.NZ> ended 1.2% up and electricity retailer Meridian Energy <MEL.NZ> added 2.7%.
Shares of co-operative Fonterra <FSF.NZ> <FCG.NZ>, the world's largest dairy producer, surged 5.1% on Friday after plunging to a record low the previous day.
(Reporting by Ambar Warrick in Bengaluru; Editing by Richard Borsuk)
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