SYDNEY, AAP – Australian shares have had their best day in more than a week as investors bounced back from central bank warnings of higher rates.

The market closed about half a per cent higher on Friday, bolstered by a one per cent gain for the heavyweight materials category.

The benchmark S&P/ASX200 index closed up 35.2 points, or 0.47 per cent, to 7478.

The index was about 150 points from its record high of August.

The All Ordinaries index closed higher by 37.2 points, or 0.48 per cent, to 7772.

The market had its first losing week in the past four and lost 0.21 per cent.

The Australian dollar was buying 74.81 US cents at 1619 AEST, lower from 74.85 US cents at Thursday’s close.