The S&P/ASX200 rallied by 60.1 points, or 0.72 per cent, to 8,357.6, as the broader All Ordinaries jumped 61.4 points, or 0.72 per cent, to 8,591.3.
The rally followed a mixed Wall Street session, but the S&P500 is up 22.8 per cent in 27 trading days, while the tech-heavy Nasdaq has surged roughly 30 per cent since early April's Liberation Day sell-off.
Despite hotter than expected jobs figures on Thursday, money markets are still tipping a 97 per cent chance the Reserve Bank will cut interest rates by 25 basis points next week, which will give equities room to push higher.
Overnight, US producer inflation slipped by the largest amount in five years, raising the likelihood of a cut in the United States.
"Producer price data unexpectedly fell, adding to the weaker CPI release at the start of the week that raised hopes for further rate cuts from the US Federal Reserve," Capital.com market analyst Kyle Rodda said.
Australia's biggest company, the Commonwealth Bank spiked to an all-time peak of $179.92 in early trading but has since eased to $170.33.
Financials stocks grew 0.3 per cent, with NAB up 1.2 per cent to $37.02 and Westpac rose 0.4 per cent, while ANZ and Macquarie slipped lower.
Eight of 11 sectors were trading higher by lunchtime, led by a 1.8 per cent rally in materials, as industrials and real estate gained more than 1.2 per cent each.
Miners BHP, Fortescue and Rio Tinto were all up trading significantly higher, while gold miners rallied as falling US bond yields lifted the precious metal.
Gold is trading at $US3,226 ($A2,960) after slipping to its lowest level in four weeks on Thursday.
Liontown Resources was the top-200's best performer, surging more than five per cent despite a lack of news and lithium prices at four-year lows.Â
The miner has surged more than 66 per cent since its presentation at last week's Macquarie Australia Conference.
Energy stocks are falling for a second day in a row, down 0.4 per cent as oil prices slipped on the prospect of a US-Iran nuclear deal, which would unlock greater crude supply.
Brent crude futures are trading at $US64.25, still 13 per cent lower than early April when US tariff announcements sent the energy source plummeting.
Consumer discretionary stocks dragged on the bourse, down 0.8 per cent as Wesfarmers and Aristocrat Leisure sold off, while IT stocks slipped 0.4 per cent after leading on Thursday.
The Australian dollar has lost ground against the greenback to buy 64.05 US cents, down from 64.39 US cents.
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