SYDNEY — The S&P/ASX 200 index rose 117.4 points, or 1.37 percent, to close at 8,710.3 on Friday, as easing concerns over potential disruptions in the Middle East and stronger commodity prices boosted investor confidence across Australian equities.

The benchmark index opened higher and maintained gains throughout the session, with broad-based buying across mining, energy and financial stocks. Trading volume was solid as market participants responded positively to signs of diplomatic progress in U.S.-Iran negotiations and stable global risk appetite.

This rebound comes after several sessions of choppy trading driven by geopolitical uncertainty. The ASX 200 had pulled back earlier in the week amid reports of fresh strikes near the Strait of Hormuz, but Friday's move reflected relief that major supply disruptions had so far been avoided.

Market Drivers and Sector Performance

Mining stocks led the gains as iron ore and copper prices recovered on expectations of steady Chinese demand. Heavyweight names including BHP Group and Rio Tinto posted solid advances, contributing significantly to the index's upward movement. Energy stocks also performed well, supported by firm oil prices despite reduced immediate fears of supply shocks.

Financial stocks provided additional support. The big four banks — Commonwealth Bank, Westpac, National Australia Bank and ANZ — traded higher as bond yields stabilized and expectations around Reserve Bank of Australia policy remained balanced. Investors appeared to price in a steady interest rate environment amid moderating inflation pressures.

Defensive sectors such as healthcare and consumer staples offered........

© International Business Times