Aussie shares rise as Trump calls for rate cuts

Australian shares have finished higher for the fourth time this week after Donald Trump demanded cuts in interest rates and the price of oil.

The benchmark S&P/ASX200 index on Friday finished up 30.2 points, or 0.36 per cent, to 8,408.9, while the broader All Ordinaries gained 31.3 points, or 0.36 per cent, to 8,660.4

Overnight Mr Trump made a blustering online address to the World Economic Forum in Davos, calling on Saudi Arabia and the Opec oil producer cartel to cut the cost of oil to choke off revenue to Russia and stop its war against Ukraine.

"You gotta bring the oil price down, that will end that war," he said.

"With oil prices going down, I'll demand that interest rates drop immediately, and likewise they should be dropping all over the world."

Despite Mr Trump's pressure, the Fed is widely expected to leave interest rates unchanged at its first policy meeting next week.

Brent crude did fall 0.9 per cent to a two-week low of $US78 a barrel following Mr Trump's comments, although the dip is likely to be transitory unless the Opec cartel follows through with an increase in production.

For the week the ASX200 rose 1.2 per cent, its third-straight week of gains and its best weekly performance in 2025, a year in which it has so far gained 3.1 per cent.

Moomoo analyst Jessica Amir said the benchmark index was in "hot pursuit" of its counterparts on Wall Street, where the S&P500 has gained 4.0 per cent and the Dow Jones Industrial Average climbed 4.8 per cent.

AMP chief economist Shane Oliver said the week had been a reminder of how Mr Trump could whipsaw markets, such as with his back-and-forth over tariffs.

"This whipsawing is likely to continue," Dr Oliver said.

Eight of the ASX's 11 sectors finished higher on Friday, with energy and technology lower and mining and telecommunications basically flat.

The consumer discretionary sector was the biggest gainer, rising 2.1 per cent as Kmart owner Wesfarmers grew 3.2 per cent to a more than one-month high of $74.66.

But Kogan.com dropped 15.2 per cent to a six-week low of $5.07 after the online retailer reported "implementation and technology challenges" had adversely impacted the sales and profitability of its Mighty Ape business during the peak holiday trading period.

In the heavyweight mining sector, goldminers were generally lower even as the precious metal traded for $US2,775 an ounce - not far from the all-time high of $US2,790 in October.

Northern Star fell 0.6 per cent, Evolution slipped 1.8 per cent and Westgold retreated 4.7 per cent.

BHP rose 0.5 per cent to $39.31, Fortescue grew 1.0 per cent to $18.81 and Rio Tinto advanced 0.3 per cent to $118.33.

Three of the big four banks finished higher, with CBA gaining 0.5 per cent to $158.65, NAB advancing 0.6 per cent to $39.40 and Westpac rising 0.2 per cent to $33.02.

ANZ was the outlier, dipping 0.1 per cent to $30.18.

The energy sector fell 1.2 per cent amid the drop in oil prices, with Woodside retreating 1.9 per cent, Santos dipping 0.1 per cent and Ampol declining 0.7 per cent.

The Australian dollar moved back above 63 US cents for the first time since mid-December, when the US Federal Reserve indicated it would likely cut interest rates in 2025 more slowly than previously forecast.

The Aussie was buying 63.25 US cents, from 62.71 US cents at Thursday's ASX close.

ON THE ASX:

* The benchmark S&P/ASX200 index on Friday rose 30.2 points, or 0.36 per cent, to 8,408.9

* The broader All Ordinaries gained 31.3 points, or 0.36 per cent, at 8,660.4

CURRENCY SNAPSHOT:

One Australian dollar buys:

* 63.25 US cents, from 62.71 at close of business Thursday

* 98.15 Japanese yen, from 98.27 yen

* 60.49 euro cents, from 60.27 euro cents

* 50.97 British pence, from 50.94 pence

* 110.74 NZ cents, from 110.71 NZ cents