The benchmark S&P/ASX200 index on Friday rose 119.9 points, or 1.37 per cent, to 8,844.4, while the broader All Ordinaries grew by 117.4 points, or 1.31 per cent, to 9,048.3.
It was the ASX200's best day since a 1.98 per cent rise on June 12, and helped it finish the week up 0.92 per cent.
AMP chief economist Shane Oliver said that gains for the week in health, mining, IT and financial shares had more than offset weakness in utilities and property shares.
Overnight, a weaker-than-expected US jobs report for June was seen as reducing the odds that the Federal Reserve would hike interest rates at its next meeting, on July 29.
That sent gold climbing back above $US4,200 an ounce for the first time in 11 days, although by 5pm it had sunk under that level at $US4,171.
Local goldminers posted most of the day's best gains, with Northern Star rising 11.8 per cent, Evolution advancing 8.8 per cent and Capricorn Metals climbing 10.1 per cent.
Smaller goldminers Catalyst Metals, Genesis Minerals and Vault Minerals also all released production updates on Friday, helping them rise by 19.2, 16.7 and 8.1 per cent, respectively.
Elsewhere in the mining sector, BHP rose 1.6 per cent to $60.50 while Rio Tinto was basically flat at $171.16 and Fortescue lost 3.2 per cent to $18.36.
In the financial sector, insurance companies were lower on the prospect that US interest rates might not rise after all, which would reduce the profitability of their short-term investments on funds set aside to pay claims.
Suncorp fell 3.7 per cent, while both IAG and QBE dropped 1.0 per cent.
The big banks all finished in the green, with ANZ rising 1.4 per cent to $35.26, CBA growing 2.4 per cent to $165.02, Westpac adding 0.7 per cent to $35.69 and NAB advancing 0.4 per cent to $38.57.
In the real estate sector, Pexagroup plunged 18.9 per cent to an all-time low of $8.80 after a NSW regulator recommended a cap on digital conveyancing fees that the company said would cost it $70 million in revenue.
"PEXA will be emphasising that phasing any price reduction over four years is critical to PEXA's ability to appropriately manage the business," it said.
The Australian dollar was trading at a 10-day high against the greenback at 69.48 US cents, from 68.94 US cents at 5pm on Thursday.
ON THE ASX:
* The S&P/ASX200 on Friday rose 119.9 points, or 1.37 per cent, to 8,844.4
* The broader All Ordinaries gained 117.4 points, or 1.31 per cent, to 9,048.3
One Australian dollar trades for:
* 69.48 US cents, from 68.94 US cents at 5pm AEST on Thursday
* 111.69 Japanese yen, from 111.47 Japanese yen
* 60.63 euro cents, from 60.50 euro cents
* 51.94 British pence, from 51.81 pence
* 131.34 NZ cents, from 121.40 NZ cents
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