The local share market's winning streak has continued for a fifth straight day - and this time, its gains were the most in over two months.
The benchmark S&P/ASX200 index closed near the high of the day on Friday, up 75.9 points, or 1.06 per cent, to a three-and-a-half week high of 7,251.2.
The broader All Ordinaries gained 81.2 points, or 1.1 per cent, to 7,451.2.
The market rose 1.8 per cent over the holiday-shortened week, snapping its three week losing streak.
The gains came after all three US indices closed about 1.2 per cent higher, a day after the Federal Reserve paused its rate-hiking cycle for first time since early 2022, with Apple and Microsoft both closing at record highs.
AMP senior economist Diana Mousina said the rally was being fueled by enthusiasm over the positive impact of artificial intelligence, optimism that the Fed was close to the end of its tightening cycle, and expectations that a US recession won't occur until late 2024 rather than this year.
Chinse stimulus measures unveiled this week are also boosting commodity prices, aiding Australia's mining sector and helping push the local currency to just under 69 US cents, its highest level in four months.
Every sector of the ASX rose on Friday except health care, with energy the biggest gainer, climbing 3.5 per cent on strong gains for coalminers.
Whitehaven climbed 8.3 per cent to a six-week high of $6.94, New Hope added 3.4 per cent to $5.73 and Yancoal gained 3.6 per cent to $4.67.
Also, oil and gas giant Woodside climbed 3.5 per cent to $35.63 and Santos climbed 4.1 per cent to $7.60 as Brent crude rebounded to a one-week high of just under $US76 a barrel.
In the utility sector, AGL soared 9.7 per cent to a two-year high of $10.60 after Australia's largest electricity generator predicted its profit for 2023/24 would more than double to between $580 million and $780 million as price hikes take effect.
The heavyweight mining sector was up one per cent with BHP finishing 0.4 per cent higher at $46.42, Rio Tinto adding 0.2 per cent to $118 and Fortescue edging 0.1 per cent to $22.51.
Goldminers fared better, with Newcrest climbing 1.7 cent and Northern Star gaining 3.8 per cent as gold prices rebounded from Thursday's sharp dip.
Lithium miner Liontown Resources added 8.3 per cent to an all-time high of $3.15 while Pilbara added 4.9 per cent to $4.89.
In tech, logistics platform Wisetech Global had also hit an all-time high, climbing 1.2 per cent to $80.08.
Kiwi cloud accounting company Xero was up 2.6 per cent to a one-and-a-half year high of $116.72.
The Big Four banks all finished higher, with CBA up 1.4 per cent to $99.35, Westpac advancing 1.5 per cent to $20.91, ANZ adding 0.7 per cent to $23.28 and NAB climbing 0.8 per cent to $25.85.
Back in the mining sector, Jervois Global soared 25 per cent to a two week high of 9c after the US Department of Defence agreed to fund $US15 million ($A21.8m) in drilling at Jervois' cobalt mine in Idaho, part of a US government initiative to secure a supply chain of the critical mineral.
In currency, the Australian dollar was buying 68.83 US cents, from 68.15 US cents on Thursday.
Cryptocurrencies had made back some of Thursday's losses, with Bitcoin up 2.8 per cent to $US25,590 ($A37,240).
ON THE ASX:
* The benchmark S&P/ASX200 index finished Friday up 75.9 points, or 1.06 per cent, at 7,251.2.
* The broader All Ordinaries gained 81.2 points, or 1.1 per cent, to 7,451.2.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 68.83 US cents, from 68.15 US cents at Thursday's ASX close
* 97.23 Japanese yen, from 96.28 Japanese yen
* 62.89 Euro cents, from 62.95 Euro cents
* 53.80 British pence, from 53.88 British pence
* 110.51 NZ cents, from 110.31 NZ cents
