Stocks rally at open
The Australian stock market rallied almost 0.9 per cent at the open after fresh record highs on Wall Street on strong economic data from China, Europe and the United States.
At the 1015 AEST official market open, the S&P/ASX200 index rallied 0.86 per cent to 5,104.8 points, while the broader All Ordinaries index added 0.82 per cent to 5,088.4 points.
IG market analyst Evan Lucas said the S&P's stellar recent run was a concern for the local market.
US manufacturing data and better-than-expected unemployment claims sent the S&P across the 1700 line to close at an all-time high of 1706 overnight Thursday.
"The S&P is the other concern for the ASX," Mr Lucas said.
"As a trailing market we take a lot of our leads from the US, and the S&P is up almost 20% year-to-date and now looks expensive on fundamental metrics."
Other better-than-expected headlines included data showing strong manufacturing activity in the eurozone and China, the lowest reading of weekly US jobless claims since January 2008 and decisions by the European Central Bank and Bank of England to maintain low interest rates.
Financials were higher, with the big four banks recouping some of yesterday's losses.
Commonwealth Bank added 0.71 per cent to $73.64, while ANZ Banking Group grew 0.9 per cent to $29.655.
National Australia Bank rose 0.85 per cent to $30.99, while Westpac Banking Corporation increased 1.13 per cent to $31.22.
Investment bank Macquarie Group expanded 2 per cent to $44.36.
In the insurance sector, QBE grew 2.03 per cent to $17.05, Insurance Australia Group inclined 0.43 per cent to $5.835 and Suncorp increased 0.64 per cent to $12.53.
Materials were also higher, with the major miners outperforming the market.
Rio Tinto put on 1.52 per cent to $58.82, while BHP Billiton climbed 1.34 per cent to $35.64.
Fortescue Metals increased 1.91 per cent to $3.74.
Whitehaven Coal rose 0.77 per cent to $1.97, while Newcrest fell 0.24 per cent to $12.25.
In energy, Santos put on 1.24 per cent to $13.93, Oil Search grew 1.41 per cent to $8.245 and Woodside put on 0.86 per cent to $38.59.
In economic news on Friday, the Australian Bureau of Statistics is expected to release the producer price index for June quarter and the overseas arrivals and departures figures, also for the June quarter.
No major equities news is expected.
In Australia, the market on Thursday edged higher despite the negative impact of speculation banks could be hit with a deposit levy.
Reports the federal government wanted banks to pay a deposit insurance levy resulted in a panicked sell-off among the big four banks.
The benchmark S&P/ASX200 index was up 0.19 per cent to 5,061.5 points, while the broader All Ordinaries index was up 0.23 per cent to 5,047.1 points.