Australian shares were flat with positive bias on Friday, as the artificial intelligence boom optimism continued to advance technology stocks into the new year.
The S&P/ASX 200 was little changed to close at 8,727.8.
Despite valuation risks and a soft US labor market, the boom in artificial intelligence strengthens expectations for the expansion in equity markets, Bloomberg reported.
"What we are seeing today is a continuation of the run higher in equities, with AI and tech again at the forefront," said Tim Waterer, chief market analyst at KCM Trade.
"Traders are still in a buying mood, with many of the bullish themes from 2025 carrying forward into 2026," Waterer added.
On the domestic front, Industry bodies Cattle Australia and the Australian Meat Industry Council warned that Chinese tariffs could cut Australia's beef exports to China by around a third, equating to a loss of over AU$1 billion in annual trade, the Commonwealth Bank of Australia (ASX:CBA) said.
The Australian home value index rose 0.7% in December, the smallest gain in five months, according to figures from Cotality.
Australia's manufacturing sector continued to expand in December 2025, supported by rising orders, increased production, and stronger hiring, even as supply constraints and cost pressures intensified, according to a survey by S&P Global.
In company news, Nickel Industries (ASX:NIC) said that Sphere would acquire a 10% stake in the Excelsior Nickel Cobalt high-pressure acid leach (ENC HPAL) project. Shares of the company rose past 7% at market close and earlier hit a 52-week high.
Capstone Copper (ASX:CSC) said that one of the four unions at the Mantoverde mine in Chile, representing around 50% of the mine's employees or 22% of the total workforce, will conduct strike action effective Friday. Shares of the company fell past 4% at market close.
Lastly, Mesoblast (ASX:MSB) said Jane Bell will retire as chair, and its board unanimously appointed Philip Facchina as non-executive chair. Shares of the company rose past 1% at market close.
