(Updates to close) Nov 18 (Reuters) - Australian shares closed...

(Updates to close)

Nov 18 (Reuters) - Australian shares closed the week slightly higher, with Friday's session underpinned by gains in financial stocks in step with a strong rally on Wall Street after Federal Reserve Chair Janet Yellen's hawkish comments.

A sharp rally in shares of Australia's biggest up-market department store operator, Myer Holdings Ltd,(MYR), also supported market sentiment. The stock jumped as much as 10.6 percent as the retail giant flagged a return to profit in 2017 financial year after net income fell for the past six financial years.

The S&P/ASX 200 index (xjo) ended 0.3 percent, or 20.862 points higher, to 5,259.4 at the close of trade. The benchmark closed down 0.2 percent for the week.

Financial stocks led gainers with Commonwealth Bank of Australia (CBA) and Westpac Banking Corp, (WBC) tacking on around 0.3 percent.

S&P ASX Financials Index .AXFJ gained as much as 0.7 percent to hit a three-week high.

Telecom stocks rallied as Telstra Corp (TLS) rose as much as 2.6 percent for its third straight session of gains as investors reacted positively to news of big cost cuts over the next five years.

New Zealand's benchmark S&P/NZX 50 index (nz50) ended 0.6 percent or 43.180 points higher to 6,857.84. The benchmark closed 2.4 percent higher for the week, snapping six sessions of losses.

The index was helped by blue-chip Auckland International Airport (AIA) rising 3.3 percent.

World's biggest dairy exporter Fonterra (FCG) (FSF) fell almost 2 percent.