The S&P/ASX200 rose 41.4 points by midday on Friday, to be up 0.48 per cent to 8,663.1, as the broader All Ordinaries lifted by 45.2 points, or 0.51 per cent, to 8,886.
"Iran suggested that the latest US proposal 'has narrowed the gaps to some extent' between the two sides," Westpac economist Mantas Vanagas said.
"However, the two countries still appear to be drifting further apart on the two central issues - Iran's nuclear ambitions and the reopening of the Strait of Hormuz."
ASX-listed miners were doing some heavy lifting heading into the weekend, with materials up 1.4 per cent with strong leads from BHP and Rio Tinto.
Arafura Rare Earths went into a trading halt a day after green-lighting its flagship ore-to-oxide Nolans Project in the NT, as it launched a $350 million institutional placement to support the endeavour.
Gina Rinehart's Hancock Prospecting has already committed $85 million to the placement, which will take Hancock's stake in the mining minnow up to 17.5 per cent.
Consumer-facing stocks were mixed, with staples up 0.6 per cent on strong performances from Woolworths, Bega and Elders, while cyclicals eked out a 0.1 per cent improvement.
Mexican-themed fast food chain Guzman Y Gomez rocketed more than 14 per cent higher after calling off its US expansion because it failed to meet its financial targets.
Ainsworth Game Technology jumped 3.8 per cent despite flagging a reduction in revenue due to increased competition and negative economic factors in the US market.
Financials advanced 0.4 per cent, led by the big four banks and investment firms as major insurers sold off.
Energy stocks edged lower as Brent oil slipped below $US105 a barrel.
Woodside eased 0.9 per cent to $31.55, while Santos swung in the other direction and coal miners were broadly lower.
Beaten-down uranium stocks continued to recover from recent weakness as sentiment improved and microchip maker Nvidia posted a new first-quarter sales record, bolstered by the global data centre build-out.
ASX-listed tech stocks advanced 0.2 per cent, as Appen soared 10 per cent after reaffirming its revenue guidance range of between $270 million and $300 million.
Utilities, communications stocks and real estate stocks underperformed the bourse, shedding between 0.8 and 1.2 per cent respectively.
Gold miners were mixed but broadly higher as the precious metal firmed to $US4,527 ($A6,340) an ounce, while Northern Star fell for a second day after announcing the departure of managing director Stuart Tonkin.
The Australian dollar was buying 71.38 US cents, up from 71.13 US cents on Thursday at 5pm.
16°C