The benchmark S&P/ASX200 index on Friday finished up 40.9 points, or 0.5 per cent, to 8,261.8, while the broader All Ordinaries climbed 48.6 points, or 0.57 per cent, to 8,520.1.
It was the market's third straight session of gains, after a tough stretch in which it lost ground for eight out of nine sessions.
For the holiday-shortened week, the ASX200 rose 2.4 per cent, snapping its three-week losing streak and posting its best performance since a 2.5 per cent gain from August 12 to 16.
Friday's gains came despite a weak lead from Wall Street, which on Boxing Day finished flat during the typically sleepy period between Christmas and New Year's Day.
"There was little to fuel or douse the momentum overnight, with indices barely going anywhere by the close of trade," Capital.com analyst Kyle Rodda said.
Eight of the ASX's 11 sectors gained ground, with tech and telecommunications basically flat and utilities lower.
The consumer discretionary sector was the biggest mover, rising 1.1 per cent as retailers reported being "swarmed" by shoppers over Boxing Day.
Crowds were "absolutely pumping" at the nation's biggest retail mall at Chadstone, in Melbourne's east, retailers association spokesperson Alexandra Keefe told AAP on Thursday.
"Really positive signs, really busy out there and just a very encouraging Boxing Day sales period," she said.
Kmart owner Wesfarmers gained 1.4 per cent to $72.56, Myer climbed 4.6 per cent to $1.26 and Universal Store added 3.1 per cent to $8.39.
All of the big four banks ended higher, with NAB climbing 0.5 per cent to $37.58, ANZ gaining per cent to $28.82, and CBA and Westpac both rising 0.7 per cent, to $156.21 and $32.66, respectively.
In the mining sector, Fortescue gained 0.7 per cent to $18.52, Rio Tinto added 0.6 per cent to $116.83 and BHP crept 0.1 per cent higher at $39.77.
Brainchip rose 15.9 per cent to an eight-month high of 36.5 cents. In response to an ASX price query, the AI chip developer said it had no explanation for the price rise.
The Australian dollar was buying 62.09 US cents, from 62.35 US cents at Tuesday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index on Friday gained 40.9 points, or 0.5 per cent, at 8,261.8
* The broader All Ordinaries rose 48.6 points, or 0.57 per cent, at 8,520.1
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 62.09 US cents, from 62.35 US cents at Tuesday's ASX close
* 97.94 Japanese yen, from 97.87 Japanese yen
* 59.64 euro cents, from 59.97 euro cents
* 49.58 British pence, from 49.75 pence
* 110.48 NZ cents, from 110.50 NZ cents
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