Australian shares rebound but set for fourth weekly drop

May 13 (Reuters) – Australian shares climbed more than 1% on Friday but were set for their fourth straight weekly drop as high inflation, rising interest rates and energy supply fears in Europe kept investors worried about a global economic slowdown.

The S&P/ASX 200 index .AXJO jumped 1.1% to 7,018.50 by 0032 GMT, with all sectors except gold trading in positive territory. The benchmark had lost 3.7% this week, as of Thursday’s close.

The flagship MSCI global index .MIWD00000PUS is down about 20% in the worst start to a year in recent memory, as rising inflation, the war in Ukraine and China’s COVID-19 woes have kept investors on edge. MKTS/GLOB

Japan’s Nikkei .N225 was up 1.74% on Friday and S&P 500 E-minis futures EScv1 were up 0.59%.

In Australia, energy stocks .AXEJ gained 1.9% but were on track for a fourth straight weekly loss.

Sector heavyweights Woodside Petroleum WPL.AX and Santos STO.AX rose 2.5% and 1.9%, respectively, on Friday.

Oil prices firmed in early trade but were headed for their first weekly drop in three as worries about inflation and China’s COVID lockdowns outweighed concerns about dwindling fuel supply from Russia. O/R

Miners .AXMM rose 1% but were set for their fourth consecutive weekly drop after losing 6.1% in the last four sessions.

Sector heavyweights BHP Group BHP.AX and Rio Tinto RIO.AX advanced 1.3% and 1.9%, respectively.

Technology stocks .AXIJ tracked the tech-heavy Nasdaq higher and were up 4%. The sub-index was the top percentage gainer on the benchmark but looked set to mark its worst weekly performance in a year. .N

Financials .AXFJ rose 0.6% after a six-session losing streak, while gold stocks .AXGD fell 0.7% on weak bullion prices. GOL/

New Zealand’s benchmark S&P/NZX 50 index .NZ50 fell 0.5% to 11,116.03.

(Reporting by Himanshi Akhand in Bengaluru; Editing by Subhranshu Sahu)

((Himanshi.Akhand@thomsonreuters.com))

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