New Zealand's benchmark stock index rose 29 points, or 0.2%, to 13,854 on Friday, reversing early weakness and extending gains from the previous session as softer U.S. inflation data reduced expectations of a Federal Reserve interest rate hike in September. Sentiment was also helped by moderating oil prices, which eased inflation concerns and reinforced expectations that the Reserve Bank of New Zealand could slow the pace of monetary policy tightening. Domestic data added support after factory activity expanded for a 21st straight month in July, albeit at a slower pace. Gains were led mainly by energy, technology, consumer discretionary and industrial stocks, with Colonial Motor up 9.2%, ANZ Group rising 1.6%, Henderson Far East Income adding 1.2% and Mainfreight gaining 1.1%. Investors remained cautious ahead of New Zealand food inflation data and China's interest rate decision next week. For the week, the index rose 0.2%, marking its second consecutive weekly gain.