Australian shares opened higher on Friday after a varied session in New York, where the Dow Jones Industrial Average reached a record high despite weakness in the technology sector.
By 10:30 am AEST (12:30 am GMT), the ASX 200 was up 0.5%, following a flat day on Thursday.
Investors in Australia received mixed signals from Wall Street, where the Dow continued its bullish run, the S&P 500 finished broadly unchanged, and the Nasdaq Composite Index retreated on selling of technology and semiconductor stocks.
The Dow jumped 1.10%, the S&P 500 slipped 0.06%, and the Nasdaq shed 0.87% on Thursday (Friday AEST), the last trading day before the Independence Day holiday.
Granite Wealth Management managing director Bruce Zaro said investors were probably taking profits in chip stocks following this year's strong gains.
"You can really point the finger at the consolidation in the chips," he was quoted as saying in a Reuters report.
Data showing lower-than-expected U.S. jobs growth in June reinforced expectations the Federal Reserve was under less pressure to raise interest rates, but investors remained cautious about the risks of inflation.
Burrell Stockbroking wealth adviser Adam Dight said he was recommending the banking, materials and property trusts sectors and selected stocks like JB Hi Fi for clients who still wanted to invest in Australian equities despite the ASX's poor performance versus the United States over the last year.
“Just the best of the best,” he said.
The Australian market had ended virtually unchanged on Thursday, with gains in banking shares helping the ASX 200 to rebound from earlier losses to close up 1.6 points to close at 8,724.5.
On the bond markets, the Australian Government bond yield was little changed, with two-year rates down 0.04% to 4.501% and 10-year rates up 0.04% at 4.810% at the time of writing.
