KEY POINTS:
The world's major share markets closed on a sombre note on Friday in the wake of the assassination of Pakistani opposition leader Benazir Bhutto, with fears of regional political turmoil triggering a flight to less risky assets.
Gold surged to a one-month peak and was about US$10 (NZ$12.93) off record highs in the wake of Bhutto's death, and a weak US dollar also helped to propel the safe-haven asset.
The spot price of gold bullion traded up to US$839.80 an ounce and has gained 31 per cent so far this year.
US stocks ended flat as weak new home sales data reinforced concerns the housing and mortgage markets might be far from a recovery, offsetting the energy sector's strength.
US new home sales dropped more than expected in November, to the slowest sales pace in 12 years, pulling down shares of home builders and the Dow Jones US Home Construction Index, which ended 2.6 per cent lower.
Even though oil prices ended lower on the day, they were up nearly 3 per cent for the week, partly reflecting concerns about global stability.
The Dow Jones industrial average was up 6.26 points to end at 13,365.87. For the week, the Dow was down 0.6 per cent, the S&P 500 was down 0.4 per cent and the Nasdaq was down 0.7 per cent.
The day's trading volume remained well below normal levels because of the holidays.
Britain's benchmark share index fell, breaking a six-day stretch of gains as concern about the impact of the credit crunch and a slowing economy weighed on banks.
The FTSE 100 index fell 20.9 points to 6476.9 on its last full trading session before the end of the year, but still rallied for a second week in a row.
European equities ended weaker, snapping a four-day winning run in the year's last full trading session as a slump in US new home sales and credit crunch worries hit markets.
The pan-European FTSEurofirst 300 index index closed down 0.2 per cent at a provisional 1505.7 after increasingly by nearly 2 per cent in the past four sessions.
Japan's Nikkei average ended 2007 with a loss for the year of 11 per cent on Friday, its first fall in five years and making Tokyo the world's worst-performing major stock market.
In 2006, the benchmark Nikkei gained 6.9 per cent, boosted by expectations of mergers and acquisitions among Japanese firms. It finished Friday's half-day session down 1.7 per cent or 256.91 points at 15,307.78.
Hong Kong blue chips fell 1.7 per cent, tracking weak US and regional markets, but the index is on track for its best yearly gain since 1999.
The benchmark Hang Seng Index has risen 37 per cent so far in 2007 versus a 69 per cent rally in 1999, when investors ploughed into up-and-coming technology stocks such as then-Pacific Century Cyberworks, as much of Asia chalked up gains in the aftermath of the 1997/98 Asian financial crisis.
China's main stock index fell as banks and property shares slipped, but it ended this year with a gain of 97 per cent, making China one of the world's best-performing markets for a second straight year.
The Shanghai Composite dropped 0.89 per cent on the day to 5,261.563 points, leaving it 14 per cent below an all-time high hit in October.
- REUTERS
