The Australian sharemarket ended the week at a three-month high after economic data in both Australia and the US helped cement expectations that central banks are gearing up to cut rates.

The S&P/ASX 200 Index rose 0.6 per cent, or 46.2 points, to 8343.7 at the closing bell, securing its eighth day of gains. The benchmark index rose 1.4 per cent over the week and is now around 3 per cent off its February 14 high.

Seven industry sectors were in the green, with real estate stocks leading the advance. The All Ordinaries also rose 0.6 per cent.

Local shares tracked the S&P 500 higher after weaker-than-expected economic data heightened speculation the US Federal Reserve will loosen monetary policy. US producer prices declined by the most in five years, while April retail sales figures pointed to soft consumer demand. Ten-year US Treasury yields slid 10 basis points.

In Australia, bond traders shrugged off Thursday’s surprise jump in employment and are still betting the Reserve Bank of Australia will cut the cash rate by a quarter of a percentage point on Tuesday.

Rate-sensitive real estate stocks rallied, with Goodman Group up 2.9 per cent to $31.82 and Vicinity Centres rising 2.2 per cent to $2.34.

Profit-taking hit Commonwealth Bank after the shares earlier touched a fresh record of $172.91. The stock was down 0.1 per cent, closing at $169.66.

Miners also buoyed the index, with gold stocks shrugging off a reversal in prices of the precious metal. Evolution Mining and Newmont Corporation both jumped 3.6 per cent, closing at $7.87 and $77.42 respectively. Iron ore heavyweights rallied, with BHP up 1.4 per cent at $39.72.

Stocks in focus

In corporate news, Dexus fell 1.1 per cent to $7.23 after the board of Australia Pacific Airports Corporation alleged the company had breached confidentiality arrangements, which, if upheld, could force Dexus to sell its stake in Melbourne Airport.

Appen leapt 18.7 per cent to $1.46 after unveiling its full-year revenue target of between $235 million and $260 million.

Dicker Data closed 1.4 per cent lower at $8.49, just minutes before the company announced co-founder and chief executive David Dicker was stepping back from the business.

And Insurance Australia Group slipped 2.8 per cent to $8.65 after UBS downgraded the stock to “neutral”.