Australian shares closed higher on Friday, marking their fifth straight weekly gain, as dismal jobs data stoked expectations of a domestic rate next month amid slowdown concerns. The S&P/ASX 200 index ended up 0.2%, or 13.3 points, at 6,730.80. The benchmark had finished 0.5% higher on Thursday. Australian employment rose in August but the jobless rate worsened to a one-year high of 5.3% as more people looked for work, a sign of spare capacity in the labour market that reinforced expectations of more central bank stimulus.

Financial futures are now predicting a 76% chance of a cut by the RBA to 0.75% at its Oct. 1 policy meeting, from a 50-50 probability before the data. "The fact that there is a confidence that the RBA will step in here and be aggressive with monetary policy and that it will happen as soon as next month, that is a positive for Australian stocks," said Kyle Rodda, market analyst at IG Markets.

RBA Governor Philip Lowe's speech on Sept. 24 will be closely watched for any hints on the timing of the stimulus, which may further shape market expectations.

Gold and copper explorer Aurelia Metals closed 7% higher, while OceanaGold Corp closed at a five-week peak.

With three of Australia's "big four" banks trading higher, the financial subindex advanced about 0.3%, marking its fifth straight weekly gain.

Oil and gas heavyweights Woodside Petroleum and Santos each ended about 1% higher. Meanwhile, New Zealand's benchmark S&P/NZX 50 index rose 0.3% or 28.34 points to finish at 10,829.39, with consumer sectors leading gains.

Copyright Reuters, 2019