ASX starts the week on the front foot after France's first round of presidential polling produces a market-friendly result, which helped push the euro to a five-month high.
Myriam Robin is a markets reporter based in the Financial Review's Melbourne newsroom.
The peaking of China's nominal growth cycle should lead Australian investors to favour defensive, locally-focused sectors, according to Bank of America Merrill Lynch.
Australia's benchmark index followed off-shore leads solidly higher on Friday, but it wasn't enough to reverse losses in the earlier part of the week.
The ASX snapped three straight sessions of losses to trade higher on Thursday, thanks to bank and telco stocks.
Investors poured into oversold iron ore miners and telco shares, but renewed selling in the banks dragged the ASX lower.
Many of Australia's best companies can now be bought without the premium that normally accompanies quality stocks, Morgan Stanley says.
Investors punished the ASX on Tuesday, as the global mood remained sour and Australia's largest export plunged.
Analysts and fund managers expect the upcoming US quarterly earnings season to be the strongest in some years.
A rising tide lifts all boats, but in times of lack-lustre growth, only some companies can keep their earnings rising regardless.
Plunging iron ore prices and a renewed focus on geopolitical tensions sent the ASX lower on Thursday, erasing the gains made earlier in the week.