The S&P/ASX200 jumped 81.6 points by midday, up 0.95 per cent, to 8,748.3, as the broader All Ordinaries gained 80.8 points, or 0.91 per cent, to 8,968.4.
It has been the top-200's longest losing streak since 2018.
The bounce came as oil prices eased from a sharp spike on Thursday, and after Wall Street hit record highs on the back of strong corporate earnings, helping investors look past the impacts of the Persian Gulf conflict.
"Geopolitical risks are still simmering away and on the balance of probabilities skew towards renewed hostilities and an extended disruption in global energy markets," Capital.com senior market analyst Kyle Rodda said.
ASX-listed miners led the recovery, with basic materials stocks up 2.3 per cent by midday, as BHP and Rio Tinto clocked gains of around three per cent each.
Gold stocks improved as the precious metal firmed to $US4,623 ($A6,420) an ounce, helping lift the All Ordinaries gold sub-index 1.2 per cent.
Evolution was a standout, up 2.2 per cent to $12.16.
Mixed miners, copper plays, rare earths and battery minerals producers all climbed higher.
Energy stocks rose 0.2 per cent despite Woodside and Santos tracking lower with the dip in oil prices.
Coal miners broadly improved, while uranium stocks made a tentative rebound after selling off in the second half of April.
Financials edged 0.3 per cent higher as ANZ kicked off reporting season, slipping 0.8 per cent to $36.46 despite its first-half $3.8 billion interim profit beating expectations.Â
"ANZ delivered a solid 1H26 result, positioning the bank well to navigate heightened uncertainty stemming from the conflict in the Middle East," Moody's Ratings VP-Senior Credit Officer Daniel Yu said.
Commonwealth Bank shares performed best of the big four, up 0.3 per cent to $174.17.
Consumer-facing stocks improved, with staples up 0.5 per cent and discretionaries advancing 0.3 per cent.
Coles jumped 0.7 per cent to $22.28 after it posted a three per cent lift in third-quarter group sales revenue to $10.7 billion.
SkyCity Entertainment shares tumbled more than four per cent after the casino trimmed its expected 2026 financial year earnings to between $180 million and $190 million, from a range of $190 million to $210 million.
Industrials stocks improved 1.2 per cent, as Qantas shares edged 0.4 per cent higher to $8.45 as it extended its service changes due to the ongoing Middle East conflict.
Virgin Australia rebounded 0.7 per cent, but has lost roughly a quarter of its value since it re-listed on the ASX in June 2025.
The Australian dollar was buying 72.02 US cents, up from 71.16 US cents on Thursday at 5pm.
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