* ASX200 snaps three-day winning streak
* Lynas tops index gains, up ~14% on U.S. rare earths deal
* NZ50 up about 1.7% for the week
Jan 22 (Reuters) - Australian shares eased slightly after
three sessions of gains on Friday, but ended the week 1.3%
higher as investor confidence improved on U.S. President Joe
Biden's fiscal stimulus plans.
For the session, the benchmark S&P/ASX 200 index
ended 0.3% lower.
"I don't know right now if the equity markets are stalling
or they are waiting for all the dust to settle from the change
of power in the United States. It might turn out to be both,"
said Brad Smoling, managing director at Smoling Stockbroking.
He, however, warned that possible pushback to Biden's $1.9
trillion stimulus proposal or major policy changes by the new
U.S. administration through executive orders without warning
could be a catalyst for an equity sell off.
Overnight, Biden signed a raft of executive orders aimed at
fighting climate change, one among which saw the administration
temporarily suspend oil and gas permitting on federal lands and
waters.
Data showed Australian retailers suffered their biggest
sales drop in eight months in December as consumers brought
forward their Christmas shopping, but analysts said the drop was
largely expected and not a concern as outlook remained strong.
The energy index was among the biggest drags, easing
nearly 2%. Santos Ltd and Beach Energy ended
2.6% and 3.1% lower, respectively.
Financials also eased, with wealth manager Perpetual
Ltd losing most in the sector, dropping nearly 5%.
Insurance Australia Group and Macquarie Group
also pulled back.
Miner Lynas Rare Earths was the index's best
performer with a 13.7% jump, after it signed a deal to build a
commercial light rare earths separation plant in Texas.
New Zealand's benchmark S&P/NZX 50 index rose 1.7%
to finish at 13,333.43 and was up 1.7% for the week. Power
companies Meridian Energy and Mercury NZ were
among top gainers for the session.
(Reporting by Rashmi Ashok in Bengaluru; Editing by Rashmi
Aich)