ASX Today Live News & Analysis

Australia's share market has posted its best week in two months after days of escalating attacks between the US and Iran gave way to optimism around a potential peace deal.

The S&P/ASX200 gained 170.8 points on Friday, up 1.98 per cent, to 8,804, as the broader All Ordinaries advanced 169.4 points, or 1.92 per cent, to 9,006.1.

The top 200 gained more than two per cent since Monday, its best performance since early April, buoyed by Middle East peace deal hopes and soft local economic data prompting a dovish repricing of Australia's interest rate outlook.

Both factors provided tailwinds to the consumer cyclicals sector, which outperformed the bourse with a rally of more than eight per cent over the five sessions, followed by staples, which gained 7.5 per cent.

Despite the good news, traders remain wary of yet another promised peace deal.

"For me, this peace deal is no different to any other, and I think the evidence of that in the sectors, which have done well here today and this week, have not been the ones you might expect to do from from a peace deal," IG market analyst Tony Sycamore told AAP.

"It's been ones that have benefited from soft data and the pretty drastic repricing we're seeing in rate expectations.

Basic materials rebounded four per cent, led by gold miners as the precious metal rebounded after five weeks of selling put the commodity in a technical bear market (more than 20 per cent down from recent highs).

Spot gold is trading at $US4,180 ($A5,942) an ounce.

Mega miners BHP, Rio Tinto and Fortescue each gained between two and more than three per cent, as copper prices rebounded but iron ore futures held onto their recent losses.

Banks helped lift the index, as the financials sector gained 1.6 per cent in a broad sector surge that helped snap a two-week losing streak for the segment.

Energy stocks underperformed, slipping 0.5 per cent on Friday and roughly flat for the week, as oil prices fell to their lowest price since mid-April.

In company news, Magellan Financial Group gained more than five per cent after the competition watchdog approved its merger with Barrenjoey.

The Australian dollar is buying 70.33 US cents, up from 70.02 US cents on Thursday at 5pm.

The Aussie has slipped from recent highs near 72.80 US cents as the Reserve Bank and Federal Reserve's respective interest rate outlooks diverged, but AMP chief economist Shane Oliver noted the RBA's hiking cycle wasn't necessarily over.

"The RBA is expected to leave rates on hold at its June meeting this coming Tuesday, but it's also likely to retain mild a tightening bias given concerns about inflation remaining above target for too long," Dr Oliver said.

"We are continuing to allow for a further rise in interest rates with the next hike likely to come in August."

ON THE ASX:

The S&P/ASX200 gained 170.8 points, or 1.98 per cent, to 8,804

The broader All Ordinaries rose by 169.4 points, or 1.92 per cent, to 9,006.1

The NZX 50 added 355.63 points (2.66%) to 13,393.87 while the Nikkei gained 1995.44 points (3.02%) at the time of writing, to be closed at 66,020.04

Companies commencing Ex-Dividend Trading Today (ASX 300):

ALS Limited

Dyno Nobel Limited