The S&P/ASX200 gained 87 points on Friday, up one per cent, to 8806.7, as the broader All Ordinaries rose 100 points, or 1.13 per cent, to 8940.4.
Dip-buying in beaten-down technology and mining stocks drove the bourse higher on Friday after concerns about artificial intelligence's debt-funded build-out sparked widespread selling earlier in the week.
"Questions around the valuation premise in the AI space had been the market's biggest driver during the week but I think to some extent, a lot of it has been a little bit overblown," Moomoo chief market strategist Tapas Strickland told AAP.
Another factor supporting sentiment was a cooling in long-dated US bond yields, but this was also a potential misread from markets.
"But against (easing bond yields), you've had some really hot inflation data, particularly the US PPI index last night for producer prices," Mr Strickland said.
"You combine that with the US consumer price index, which is a little bit too hot as well, then there may not be actually too much rational basis for the fallback in yields."
Miners did much of the heavy lifting in the week's final session, with BHP jumping 3.5 per cent to $60.03 per share.
Gold stocks also gathered strength as the precious metal crept higher to $US4175 ($A6032) an ounce.
The heavyweight financials sector ended the session lower but gained more than three per cent for the week to its highest level since early September.
Energy stocks posted a second week of gains, with oil prices advancing amid escalating fighting between Saudi forces and Houthi rebels and persistent Iranian strikes on tankers in the Strait of Hormuz.
Consumer-facing sectors performed well during the week, particularly staples, which surged 3.4 per cent over the five sessions after investors piled into defensives as risk assets were hammered on Thursday.
In company news, Cleanaway shares tumbled more than six per cent to $2.47 amid uncertainty around its potential takeover by Swedish private equity group EQT.
Zip Co US business boss Joe Heck has quit, with US chief technology and operations officer Rory Herriman to step up as interim chief executive and president.
The Australian dollar is buying 69.42 US cents, down from 69.51 US cents on Thursday at 5pm AEDT.
ON THE ASX:
* The S&P/ASX200 rose 87 points, or one per cent, to 8806.7
* The broader All Ordinaries gained 100 points, or 1.13 per cent, to 8940.4
One Australian dollar trades for:
* 69.42 US cents, from 69.51 US cents at 5pm AEST on Thursday
* 109.56 Japanese yen, from 109.74 Japanese yen
* 61.85 euro cents, from 61.97 euro cents
* 52.20 British pence, from 52.50 pence
* 122.87 NZ cents, from 123.82 NZ cents
17°C