Australia shares on three-week rally as optimism of rate cut increases

Australian shares rose on Friday to log their third week of consecutive gains, helped by gains in banks and discretionary stocks ahead of inflation data next week that is expected to lead to lower interest rates.

The S&P/ASX 200 benchmark index closed 0.4% higher at 8,408.9 points. The index has risen 1.2% this week, its best performance in a month, and has gained nearly 2% in the past three weeks.