Stocks have rebounded 3.5 per cent on the local bourse after a surge on US and European markets.
Confidence has risen as investors see governments and central banks taking action to ease the economic pain of the coronavirus outbreak, analysts say.
The benchmark S&P/ASX200 surged 171.3 points, or 3.58 per cent, to 4,954.2 at 1015 AEDT on Friday with all indicies in the green except health care.
The broader All Ordinaries index jumped 172.4 points, or 3.58 per cent, to 4,981.8.
David de Garis of NAB’s morning call podcast says some of the optimism is coming from the recent flood of coronavirus management policy announcements and as central banks ease liquidity concerns.
The local bourse shrugged off an RBA rate cut on Thursday to close in negative territory.
The ASX200 has lost 33.5 per cent in the past four weeks.
The Australian dollar plunged to a low of 55.08 US cents at one point on Thursday, a level last seen in October 2002.
One Aussie dollar was buying 56.81 US cents at 1015 AEDT on Friday, down from 56.89 US cents at Thursday’s ASX close.