Australian shares end near 4-month high, supported by insurers; NZ firmer

Australian shares ended at their highest in nearly four months on Friday, supported by insurer stocks after the government unveiled healthcare reforms designed to promote private cover among younger residents.

Australia's benchmark S&P/ASX 200 index rose 0.3 per cent, or 19.734 points, to close at 5,814.20. The benchmark rose 0.4 per cent on Thursday.

The index ended the week 1.8 per cent higher, its biggest gain since the last week of March.

Financials pushed the main index higher, with lender Westpac Banking Corp closing up 0.5 per cent.

The financial index ended near a two month high, with insurer Medibank Private leading the gains, rising 2 per cent to close at its highest in over 14 months.

Prime Minister Malcolm Turnbull's government announced reforms allowing insurers to discount hospital insurance premiums for people aged 18 to 29 by up to 10 per cent to encourage younger Australians to buy private cover.

The Reserve Bank of Australia's Financial Stability Review released on Friday said the banking system had robust capital and liquidity positions to withstand any shock. Banking peers Commonwealth Bank of Australia and National Australia Bank rose 0.3 per cent each.

Meanwhile, Australian miners were boosted by news that Chinese iron ore imports rose 16 per cent in September, compared with August. Miners BHP Billiton and Rio Tinto rose, gaining 0.6 per cent, each.

The most-traded iron ore contract on the Dalian Commodity Exchange was up 2.4 per cent as China's top steelmaking city enforced production cuts, recovering from a 3-1/2-month low it hit on Thursday.

New Zealand shares closed up for the ninth straight day to set another record high amid signs of clearing political uncertainty.