The Australian sharemarket recorded its strongest one-day advance since April on Friday, as improving risk sentiment swept through global markets after United States President Donald Trump suggested a peace agreement with Iran could be signed as soon as this weekend.
The S&P/ASX 200 Index closed up 170.8 points, or 2.0%, at 8,804.0, with nine of the 11 sectors finishing in positive territory. The gain marked the benchmark's largest daily rise since 8 April.
For the week, the index advanced 2.1%.
Materials stocks led the market higher, with gold producers rallying after bullion prices rebounded overnight.
Northern Star Resources gained 5.1%, Evolution Mining surged 7.3%, and Newmont Corporation added 4.0%.
The major miners also posted strong gains. BHP climbed 3.5%, Rio Tinto rose 2.4%, and Fortescue advanced 3.1%.
Consumer discretionary stocks participated in the rally as investors rotated back into growth-sensitive sectors. JB Hi-Fi added 1.4%, Domino's Pizza Enterprises rose 1.2%, and Wesfarmers gained 2.6%.
Financial stocks provided significant support to the benchmark index. Commonwealth Bank rose 2.0%, National Australia Bank gained 2.3%, Westpac Banking Corporation added 1.5%, and ANZ Group Holdings advanced 1.0%.
Real estate stocks were also stronger, as Goodman Group rose 2.2%, Charter Hall Group gained 3.0%, Mirvac added 1.4%, Stockland rallied 3.2%, and Lendlease jumped 4.7%.
The Energy sector was the main area of weakness as oil prices retreated amid hopes that tensions in the Middle East could ease.
Woodside Energy fell 0.9%, Beach Energy lost 1.4%, Viva Energy declined 3.4%, while Santos finished unchanged.
On the bond markets, Australian government bond yields edged lower. The 10-year yield slipped 0.3% to 4.816%, while the two-year yield fell 0.9% to 4.475%.
