The local share market has finished a good week with a strong rally, climbing after solid US economic data dispelled fears the world's largest economy was slipping into recession.
The benchmark S&P/ASX200 index finished Friday up 105.6 points, or 1.34 per cent, to 7,971.1, while the broader All Ordinaries gained 106.1 points, or 1.31 per cent, to 8,189.9.
The ASX200's 2.49 per cent rise for the week was its best weekly performance since mid-December.
The ASX200 has now risen for six straight days, clawing back all of its losses from its sharp 3.7 per cent plunge a fortnight ago.
The rally came after the US Census Bureau reported that American retail sales increased one per cent in July - far better than the 0.3 per cent rise economists had expected.
The number of Americans making new unemployment claims last week also fell.
Capital.com analyst Kyle Rodda said the readouts made the July jobs report that led to the August 5 sell-off "look like a relatively minor growth scare", although final confirmation of that won't come until the August jobs report is released in early September.
Naeem Aslam, chief investment officer at Zaye Capital Markets, said the recent data had shifted traders' perspectives on the economic situation, particularly in the US, and they were less concerned about a potential recession.
"Pretty much everyone understands that the biggest and most powerful economy in the world, the US, is heading towards a soft landing," Mr Aslam wrote in a client note.
Every sector of the ASX finished in the green on Friday, with the energy sector the biggest gainer, rising 2.2 per cent as Woodside climbed 2.4 per cent.
The heavyweight mining sector - which has been a laggard in recent days as iron ore prices dropped to less than $US100 a tonne for the first time since mid-2023 - was close behind with a 2.1 per cent gain.
Fortescue climbed 3.1 per cent to $17.34, BHP rose 2.0 per cent to $40.01 and Rio Tinto grew 1.6 per cent to $110.09.
All of the big four banks were higher, with CBA up 2.4 per cent to $138.13, ANZ climbing 1.4 per cent to $29.59, NAB rising 1.5 per cent to $36.48 and Westpac finishing 1.2 per cent higher at $29.66.
Buy now, pay later company Zip Co was the biggest gainer in the ASX200, climbing 13.5 per cent to a two-year high of $2.19 after announcing a partnership with fintech Stripe in the US.
The Australian dollar was buying 66.35 US cents, from 66.21 US cents at Thursday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Friday up 105.6 points, or 1.34 per cent, at 7,971.1
* The All Ordinaries gained 106.1 points, or 1.31 per cent, to 8,189.9
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 66.35 US cents, from 66.21 US cents at Thursday's ASX close
* 98.86 Japanese yen, from 97.43 Japanese yen
* 60.41 euro cents, from 60.11 euro cents
* 51.53 British pence, from 51.53 pence
* 110.29 NZ cents, from 110.24 NZ cents
