The S&P/ASX200 rose 54.1 points on Friday, up 0.6 per cent, to 9,092.3, as the broader All Ordinaries advanced by 51 points, or 0.55 per cent, to 9,294.2.
The top-200 rose 0.37 per cent since Monday, following a sharp midweek selldown after July's hot inflation print increased the odds of further interest rate hikes.
Resources stocks outperformed the broader market on the back of strong commodity prices, while consumer staples also supported the exchange after solid financial results from Coles and Woolies.
Earnings season so far had delivered total estimated profit growth of 11.6 per cent after three financial years of falls, AMP deputy chief economist Diana Mousina said.
"The negative is that the improvement is narrowly based. Take out mining and energy and its more like 5.3 per cent," Ms Mousina said.
About 36 per cent of earnings have beaten expectations, lower than the usual 40 per cent, with more results being "in line" with expectations.
"Australian shares lagged and were basically flat over the week as domestic profit growth just can't compete with blockbuster US outcomes and on signs that another RBA rate hike may come sooner than expected," Ms Mousina said.
Financials stocks staged a 0.8 per cent rebound on Friday, but ultimately clocked a third-straight week of losses, falling almost a tenth since mid-August as mortgage market concerns mount.
The energy segment finished strong but retreated 1.4 per cent over the week as crude prices softened, as shipping traffic in the Hormuz Strait picked up despite an ongoing US-Iran stalemate.
Consumer discretionary stocks fell for a third week as well, punctuated by decent sales results from Harvey Norman, despite a major drop in foot traffic.
Virgin Australia defied disruptions to its Middle East services to hand down a $501 million full-year statutory net profit, up 4.7 per cent, but that didn't stop its share price from easing on Friday.
The Australian dollar is buying 71.99 US cents, up from 71.84 US cents on Thursday at 5pm AEST.
With earnings season winding down, the local focus is shifting to the macroeconomic outlook, with GDP data due next week and economists divided on when the next interest rate hike will come.
"Strong GDP and/or employment reports could tip the RBA into raising rates next month, but it still seems more likely November will be the next window of opportunity following release of the September quarter CPI in late October," Betashares chief economist David Bassanese said.
ON THE ASX:
* The S&P/ASX200 gained 54.1 points, or 0.6 per cent, to 9,092.3
* The broader All Ordinaries rose 51 points, or 0.55 per cent, to 9,294.2
One Australian dollar trades for:
* 71.99 US cents, from 71.84 US cents at 5pm AEST on Thursday
* 114.77 Japanese yen, from 114.48 Japanese yen
* 61.80 euro cents, from 61.65 euro cents
* 52.96 British pence, from 52.86 pence
* 120.77 NZ cents, from 120.78 NZ cents
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