From Morrison Securities Pty Ltd.:

Australian shares ended Friday on a strong note for their third successive week higher. Easing concerns about Europe's debt and more upbeat earnings from Wall Street boosted local optimism. At the close on Friday, the benchmark S&P/ASX200 index was up 24.8 points, or 0.6 per cent, at 4,239.6, while the broader All Ordinaries index was up 24.4 points, or 0.6 per cent, at 4,303.

On the ASX 24, the March 2012 share price index futures contract was up 22 points at 4,219, with 24,122 contracts traded. Stocks added 2.2 per cent for the week after a series of positive debt auctions in Europe, culminating in a sharp drop-off in yields on Spanish bonds overnight. Traders said this signalled growing investor confidence in the region's economy. Forecast-beating results from Wall Street banks Morgan Stanley and Bank of America also added to the momentum on the local bourse and buoyed hopes that the world's largest economy was on the track to recovery.

Locally, the day's biggest gains were energy stocks, which added 1.1 per cent on the back of a five per cent, or seven cent, rise from Beach Energy to $1.475. AWE rose 4.2 per cent, or 5.5 cent, to $1.38 and Woodside pushed 1.5 per cent, or 51 cents, higher to $33.99. Resources stocks added 0.9 per cent on the back of rising metals prices, strong production reports from the iron ore sector and reports of a rise in merger and acquisition activity among Brazil's miners. BHP Billiton was up 14 cents, or 0.37 cents, at $37.48 and Rio Tinto was 78 cents, or 1.17 per cent stronger at $67.53. Investors shrugged off data showing China's manufacturing sector contracted for the third straight month in January, saying the number at least showed the contraction was easing.

Financials ended higher, adding 0.5 per cent after Bank of America and Morgan Stanley's results both topped analysts' forecasts. Westpac ended up 0.4 per cent, or eight cents, at $20.68 as reports surfaced that the bank plans to issue its first covered bonds to raise funds, after Commonwealth Bank did the same earlier this week. Investors are also nervous as talks to restructure Greece's debt continue unresolved and ahead of what are expected to be poor earnings from US bellwether stock General Electric on Friday.

The Australian dollar inched slightly higher on Friday, helped in part by reassuring euro-zone debt auctions and signs of progress on Greek debt restructuring talks. In the progress, the Greek government and its private-sector creditors are seen nearing a debt-restructuring deal, raising hopes of securing another multibillion-euro bailout for the country. The development helped Australia's currency, while weighing on prices of bonds. Even so, the Australian dollar's gains were held in check by a reading of manufacturing for China remaining virtually flat in January, with manufacturing sentiment for Australia's largest trading partner stuck in contraction. Further weighing on the local currency, Australian Prime Minister Julia Gillard said there is room for the Reserve Bank of Australia to ease interest rates in an interview with Sky News Television. Australia's comparatively high interest rate, at 4.25%, has been one factor keeping the currency well sought after even during a recent pick-up in global economic fears. The Australian dollar was trading at $1.0400, up from $1.0392 late Thursday. Against the Japanese yen, the Australian currency changed hands at 80.22, up from 79.775.