The ASX/S&P200 index on Friday finished up 56 points, or 0.79 per cent, to 7104.1, while the broader All Ordinaries gained 53.9 points, or 0.74 per cent, to 7345.8.
For the week the ASX was down 10.4 points, or 0.15 per cent, its first losing week since July 11-15.
Friday was "a bit of a relief rally, but I guess the talk of the town is obviously what's going to happen in Jackson Hole tonight", said CMC Markets APAC and Canada analyst Azeem Sheriff.
US Federal Reserve chairman Jerome Powell is scheduled to speak at the central bank's annual economic symposium, a forum that's historically been used for important policy addresses.
"How hawkish they're going to be is the big, million dollar question," Mr Sheriff told AAP.
"The market is expecting more rhetoric, and that's probably not going to be too good for equity markets. So if that's the case, then we may see a bit of a downfall probably early next week."
Equity markets rallied strongly from March 2020 onwards after central banks cut rates as a COVID stimulus measure. They have fallen since April as rates were hiked to quell inflation.
Higher interest rates for safe bank deposits generally make riskier assets like shares less attractive.
Every sector of the ASX was higher on Friday expect for telecommunications, which dropped 0.3 per cent. Energy, materials, consumer staples and healthcare were all up by more than a percentage point.
The big banks were all higher, with NAB up 1.0 per cent to $30.61, CBA adding 0.5 per cent to $93.31, and ANZ and Westpac both advancing 0.4 per cent, to $22.96 and $21.68, respectively.
"There's no particular news on the banks today, but again, (they're gaining) on a general macro theme, because of the expected hawkish rhetoric," Mr Sheriff said.
A number of companies announced earnings during the last full week of reporting season.
Wesfarmers gained 0.7 per cent to $47.95 after announcing a full-year net profit after tax of $2.3 billion, down 2.9 per cent from last year but beating consensus expectations. The KMart and Bunnings owner also said it would pay out a better-than-expected final dividend of $1 per share.
Bega Cheese rose 11.8 per cent to a two-month high of $4.18. The dairy producer announced it had generated net operating cash flow of $158 million and reduced its debt by $60 million to $265 million.
Executive chairman Barry Irwin called the results "a testament to the knowledge, experience and capability of our team and strength of our business" in a year beset with challenges.
PolyNovo fell 18.8 per cent to a four-week low of $1.64 as the synthetic skin company reported cash outflows of $2.1 million during the 12 months to June 30.
Jumbo Interactive rose 3.1 per cent to $14.38 as the lottery reseller announced a surprise $25 million share buyback along with its earnings results.
Westgold Resources dropped 17.6 per cent to 96c after the goldminer reported a full-year net loss of $111.1 million, compared to a $76.8 million profit the year before, after taking a $175 million non-cash impairment charge.
Elsewhere in the heavyweight mining sector, BHP was up 1.7 per cent to $42.90, Fortescue Metals was up 2.3 per cent to $19.58, and Rio Tinto had added 1.2 per cent to $98.395.
The Australian dollar meanwhile was buying 69.59 US cents, from 69.67 US cents at Thursday's close.
ON THE ASX:
* The benchmark S&P/ASX200 index on Friday finished up 56 points, or 0.79 per cent, at 7104.1.
* The broader All Ordinaries gained 53.9 points, or 0.74 per cent, to 7345.8.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 69.76 US cents, from 69.76 US cents at Thursday's close
* 95.37 Japanese yen, from 95.26 yen
* 69.82 Euro cents, from 69.64 cents
* 59.01 British pence, from 58.84 pence
* 112.41 NZ cents, from 111.93 cents.
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