Australian shares rally as traders bet on peace deal
The ASX has posted its best performance since early April. -AAP Image
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.
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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 more than eight per cent rally over the five sessions, followed by staples, which gained 7.5 per cent.
The Australian dollar is buying 70.29 US cents, up from 70.02 US cents on Thursday at 5pm.
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