Australian shares rebound from three-month low, remain on track for weekly loss

By Reuters News

Oct 2 (Reuters) - Australian shares rose on Friday, recovering from a more than three-month low hit in the previous session as banks, energy stocks and easing bond yields lifted the benchmark, although it remained on track for a fifth consecutive weekly decline.

The S&P/ASX 200 index .AXJO was up 0.4% at 8,647.8 points as of 0007 GMT.

For the week, as markets contended with a 15-year high cash rate and softer-than-expected yet stubbornly high inflation, the benchmark index was down 0.2%.

The benchmark closed 2% lower on Thursday, its lowest level since mid-June, pressured by a spike in bond yields.

Australian government bond yields fell in tandem with US Treasuries, with the benchmark 10-year yield easing to 5.36% and the three-year yield to 4.88%.

Financials .AXFJ rose as much as 0.6%, but were on track for a fourth consecutive weekly decline if current momentum persists.

All "Big Four" banks were up between 0.2% and 0.8%.

Energy stocks .AXEJ advanced 1.8%, headed for their best day since mid-September, as oil prices jumped overnight after China halted fuel exports. O/R

Sub-index heavyweights Santos STO.AX and Woodside WDS.AX added 2.2% and 1.5%, respectively.

Miners .AXMM climbed 0.7%, with behemoths BHP BHP.AX, Rio Tinto RIO.AX adding 0.7% and 0.5%, respectively, while gold stocks .AXGD were up 0.4%. IRONORE/ GOL/

Technology stocks .AXIJ rose as much as 3.8%, notching their highest level since early September. The gauge is set to snap a sixth consecutive weekly loss, up 5.8% so far this week.

Consumer staples .AXSJ and discretionary stocks .AXDJ added 1% and 0.4%, respectively.

Bucking the broader positive trend, healthcare sub-index .AXHJ slipped 0.5% while real estate stocks .AXRE shed 0.6%.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.7% to 13,715.99 points.

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