Australian equities closed their strongest week in three months on Friday, with the benchmark S&P/ASX 200 index finishing 1.4% higher at 8,844.40 points.
The rally was broad-based but anchored by significant gains in the financial and mining sectors, which benefited from a shift in global macro conditions.
The market advance was underpinned by cooling expectations for further interest rate hikes by the US Federal Reserve.
As the probability of additional tightening receded, risk sentiment improved across global markets, providing tailwinds for Australian assets.
This repricing of rate expectations helped lift investor confidence, reversing recent caution.
Banks and miners led the charge, reflecting the dual drivers of lower borrowing costs and stable commodity demand.