Australian shares beat jitters to finish month on high

Australia's share market has climbed higher for a second month in a row and is within striking distance of its all-time peak.

The S&P/ASX200 overcame an early dip to rise 24.9, or 0.30 per cent on Friday, to 8,434.7.

The broader All Ordinaries gained 22.5 points, or 0.26 per cent, to 8,660.3.

The top 200 lifted 3.5 per cent in May to within 1.5 per cent of its best ever close and, despite some choppy sessions, only posted six red days all month.

"It's been a solid grind, but we are grinding at moment - the market's looking a bit exhausted at this point," Pepperstone head of research Chris Weston told AAP.

"But the pullbacks seem to be well supported in this market, so it's been a good month for Australian equity appreciation, as it has been for most developed market equity markets."

A US appeal court decision to temporarily reinstate sweeping US tariffs a day after they were blocked by a trade court weighed on indexes in Asia, but Australia's afternoon rebound was an exception.

Hong Kong's Hang Seng lost 1.5 per cent, as Japan's Niikei fell 1.2 per cent and South Korea's KOSPI dropped 0.8 per cent, but all three were up for May.

"Obviously, people are looking at the tariff news flow and saying, 'How on earth do we invest in that environment?' Things are changing every five minutes," Mr Weston said.

"But domestically, the economy is okay, and the market still expecting three rate cuts this year so that's a nice tailwind for an equity market."

Seven of 11 local sectors made gains on Friday, with financials and materials pushing the bourse higher and as investors took profits on IT stocks, May's best performing sector with gains of more than 20 per cent.

Financial stocks pushed 0.7 per cent higher on Friday as CBA notched its highest monthly close of $175.95 after rallying almost six per cent in May.

Gold miners helped lift the materials sector, which rose 0.3 per cent on Friday and less than two per cent for the month, as weak iron ore prices continued to weigh on large cap miners.

Gold futures slipped shortly after the ASX close at $US3,324 ($A5,180) as the US dollar pushed higher, pricing the precious metal on par with April 30.

Energy stocks under performed the broader market, shedding 1.4 per cent on Friday as oil prices slipped on the reinstatement of US tariffs.

The sector is up more than eight per cent for the month as it continued to recover from a tariff-fuelled sell-off, but it's more than a third below its highest value this decade.

Brent crude futures are trading at $US62.99 a barrel, on par with four-year lows.

The Australian dollar is buying 64.23 US cents, down from 64.32 US cents on Thursday at 5pm and less than half a US cent higher than May 1.

Cryptocurrency Bitcoin is trading at $US105,490 ($A164,415) after hitting an all-time peak of nearly $US112,000 this time last week.

AMP chief economist Shane Oliver said while there were signs economic conditions were holding up well, US policies posed a risk to equities.

"Shares have had a good rebound ? with the ASX 200 just 1.4 per cent below its record high - and may even break to record highs in the near term," Dr Oliver said.

"But the macroeconomic risk flowing from Trump's policies remains high so the ride is likely to remain volatile."

ON THE ASX:

* The benchmark S&P/ASX200 index finished Friday 24.9 points higher, or up 0.3 per cent to 8,434.7

* The broader All Ordinaries rose 22.5 points, or 0.26 per cent, to 8,660.3

CURRENCY SNAPSHOT:

One Australian dollar buys:

* 64.23 US cents, from 64.32 US cents on Thursday at 5pm

* 92.38 Japanese yen, from 93.63 Japanese yen

* 56.61 Euro cents, from 57.06 Euro cents

* 47.66 British pence, from 47.80 pence

* 107.65 NZ cents, from 108.05 NZ cents