The S&P/ASX200 surged 125.1 points on Thursday, up 1.47 per cent, to 8,621.7, as the broader All Ordinaries gained 123.8 points, or 1.42 per cent, to 8,840.8.
"Today's ASX rebound is a classic relief rally after weeks of heavy selling, with strong Wall Street leads, Nvidia-driven tech optimism and a slight cooling in geopolitical tension all arriving at the same time - giving the market the oxygen it was waiting for," Vantage senior market analyst Hebe Chen told AAP.
"The weaker April jobs report added the final piece, taking some heat out of near-term Reserve Bank hike expectations and giving equities a cleaner runway to bounce."
Strong rallies in banks, miners and real estate trusts led the market higher, with eight of 11 local sectors improving.
Energy and utilities stocks underperformed, as the Brent crude benchmark dipped to $US106 a barrel from more than $US111 on Wednesday.
Woodside fell two per cent, while coal miners were mixed and uranium stocks clawed back some recent losses.
Mega miners Rio Tinto and BHP each soared more than three per cent as copper prices improved but iron ore eased to less than $US109 a tonne.
Gold miners broadly improved as the precious metal hovered about $US4,535 ($A6,365) an ounce, while Northern Star tumbled two per cent after managing director Stuart Tonkin announced his retirement after almost 10 years at the helm.
Gina Rinehart-backed Arafura Rare Earths charged more than five per cent higher after green-lighting its flagship ore-to-oxide Nolans Project in the NT.
James Hardie shares surged by a similar amount after its sales swelled by a quarter between its 2025 and 2026 financial years.
The big four banks and Macquarie all carved out gains after coming under pressure earlier in the week, with NAB and Westpac out front with advances of two per cent or more.
Real estate trusts gained more than two per cent in a broad sector upswing, buoyed by improving risk sentiment and after the soft jobs print moderated investors' fears of interest rate hikes.
Rates markets now tip one more increase by year-end.
"Consequently, the RBA's terminal rate is now viewed at 4.60 per cent - a significant drop from the 4.85 per cent peak we saw at the end of last month," IG market analyst Tony Sycamore said.
Industrials stocks bounced 1.6 per cent as peace deal hopes launched Qantas and Virgin Australia higher, while Brambles clawed back some of the week's almost 25 per cent post-guidance-downgrade wipe-out.
Consumer discretionaries bounced 1.3 per cent with strong performances from Temple & Webster, Domino's Pizza and JB Hi-Fi, despite cost pressures clouding the segment's outlook.
In company news, piercing chain Skin Kandy rallied 6.8 per cent to $2.35 as it made its ASX debut.
Buy-now, pay-later offering Zip Co jumped 2.7 per cent to $2.26 after winning the right to continue using the name Zip following settlement of a trademark stoush with mortgage lender Firstmac.
The Australian dollar is buying 71.13 US cents, up from 71.02 US cents on Wednesday at 5pm.
ON THE ASX:
* The S&P/ASX200 gained 125.1 points, or 1.47 per cent, to 8,621.7
* The broader All Ordinaries gained 123.8 points, or 1.42 per cent, to 8,840.8
One Australian dollar trades for:
* 71.13 US cents, from 71.02 US cents at 5pm AEST on Wednesday
* 113.16 Japanese yen, from 112.96 Japanese yen
* 61.22 euro cents, from 61.27 euro cents
* 52.95 British pence, from 53.07 British pence
* 121.49 NZ cents, from 121.78 NZ cents
