(Reuters) - Australian shares advanced on Friday, capping a second straight week of gains, as fresh signs of progress in the U.S.-China trade talks brightened the mood for risky assets.
The S&P/ASX 200 index <.AXJO> ended the session 0.9% higher at 6,793.70, capping a 1.04% weekly gain. The benchmark rose 0.6% on Thursday.
U.S. White House economic adviser Larry Kudlow said the world's two largest economies are getting close to a trade agreement, citing what he called "very constructive" discussions with Beijing. [nL2N27U28F]
Still, any increase in appetite for risky assets could be short lived, given the very fluid nature of the Sino-U.S. trade talks, according to a note issued by OCBC analyst Terence Wu.
The heavyweight mining sector <.AXMM> ended the session more than 1% higher, helped by an increase in iron ore prices. The sub-index marked its first weekly loss since the five days ended Oct. 18.
The world's largest miner BHP Group Ltd <BHP.AX> rose about 1.8% to close at its highest in over a week, while peer Rio Tinto Ltd <RIO.AX> gained about 1.2%.
Healthcare stocks <.AXHJ> climbed 1.25% to close at a record high, while marking their seventh consecutive week of gains, as CSL Ltd's <CSL.AX> 1.7% climb helped boost the sub-index. The heavyweight drugmaker ended the session at a fresh peak and provided the biggest boost for the sector.
Tech stocks <.AXIJ> maintained their winning streak for a seventh consecutive session, rising nearly 2% to make their biggest weekly gain since early August.
Index behemoth Wisetech <WTC.AX> closed about 1.8% higher while Afterpay Touch Group <APT.AX> ended 4.5% up.
The energy space <.AXEJ> inched up 0.7% as its components gained from a rise in oil prices on optimsm over a U.S.-China trade deal and on hopes that OPEC will curb supplies. [O/R]
Major oil and gas players Woodside Petroleum <WPL.AX> and Oil Search <OSH.AX> each gained about 0.6%.
Meanwhile, agribusiness company Graincorp <GNC.AX> finished 11.2% higher and was the biggest percentage gainer on the benchmark after Australia's competition regulator approved the takeover of the company's domestic bulk liquids terminals business by ANZ Terminals. [nL4N27U5AD]
The regulatory obstacles had kept the deal on hold, delaying Graincorp's restructuring efforts.
New Zealand's benchmark S&P/NZX 50 index <.NZ50> erased earlier gains to inch 0.04% lower, ending at 10,894.70.
Movie software developer Vista Group <VGL.NZ> fell 3.2% and was top loser on the New Zealand benchmark, followed by tourism company Tourism Holdings <THL.NZ> which declined almost 3% to a week's low.
(Reporting by Nikhil Subba in Bengaluru; Editing by Simon Cameron-Moore)
