The local share market has closed higher for a fourth straight day, enjoying its best weekly performance in months on hopes the Fed has finished raising rates and the war in Gaza won't spread.
The benchmark S&P/ASX200 index on Friday finished up 78.2 points, or 1.14 per cent, to 6,978.2 - its highest finish since October 19.
The broader All Ordinaries rose 81.1 points, or 1.13 per cent, to 7,175.1.
For the week, the ASX200 gained 2.2 per cent, its best weekly performance since a 2.3 per cent gain from August 28 - September 1.
"The prospect of the end of US interest rate hikes has stoked risk appetite in the markets," said Capital.com market analyst Kyle Rodda.
While Fed chairman Jerome Powell said this week that the US central bank could hike rates again, the overall tone of his remarks convinced many market participants that the peak is in.
Overnight the Bank of England left rates on hold, as did Norway's central bank.
"It's likely that all developed country central banks have finished tightening with the probable exception of Japan and Australia," wrote AMP chief economist Shane Oliver, who believes the Reserve Bank will probably hike on Tuesday in a close call.
But Dr Oliver cautioned that there was still significant downside risks in the market, including a flare-up of the fighting in the Middle East involving Iran.
Domestically, Australia's service sector contracted in October, albeit only moderately, Judo Bank service purchase manager's index data released Friday found.
Every sector of the ASX finished higher except for energy, with property the biggest gainer rising 2.1 per cent. For the week, real estate gained 6.9 per cent, its best performance since late-June 2022.
Block was the biggest gainer in the ASX200, soaring 25.2 per cent to a month-and-a-half high of $81.18 after the Afterpay owner reported stronger-than-expected third-quarter earnings and strong growth in both its Cash App and Square revenue.
All of the big four banks finished higher, with NAB climbing 1.7 per cent to $29.06, Westpac adding 1.6 per cent to $21.50, CBA advancing 1.5 per cent to $99.93 and ANZ gaining 0.9 per cent to $25.60.
In the heavyweight mining sector, Rio Tinto added 0.7 per cent to $122.60 and BHP rose 0.3 per cent to $45.50, while goldminer Newmont gained 1.2 per cent to $58.94.
Coles rose 0.8 per cent to $15.45 as the supermarket group held its annual general meeting in Melbourne, with chief executive Leah Weckert highlighting efforts to modernise its supply chain with new automated warehouses.
Treasury Wine Estate fell 7.8 per cent to a three-month low of $11.04 as the Penfolds owner completed a $604 million capital raising at $10.80 a share to help fund its $1.6 billion acquisition of California winemaker DAOU Vineyards.
In health care, Integral Diagnostics plummeted 27.2 per cent to a six-year low of $1.93 after the radiologist and diagnostic imaging provider said clinical staff shortages, particularly in regional areas, and cost inflation had continued into the September quarter, putting a crimp on operating earnings.
Neuren climbed 8.5 per cent to $12.25 after the drug development company reported better-than-expected sales for its new treatment for a rare genetic disorder called Rett syndrome.
Neuren stands to make $26 million to $28 million in royalties in 2023 from Daybue, it said.
The Australian dollar was buying 64.31 US cents, from 64.25 US cents at Thursday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Friday up 78.5 points, or 1.14 per cent, at 6,978.2.
* The broader All Ordinaries gained 80.1 points, or 1.13 per cent, at 7,175.1.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 64.34 US cents, from 64.25 US cents at Thursday's ASX close
* 96.67 Japanese yen, from 96.66 Japanese yen
* 60.52 Euro cents, from 60.62 Euro cents
* 52.71 British pence, from 52.74 pence
* 108.99 NZ cents, from 109.21 NZ cents.
