The local share market was off to a record breaking start in March, as fresh highs on Wall Street and positive manufacturing data from China bolstered the benchmark.

The ASX200 closed at a record high on Friday, echoing an impressive run on Wall Street and supported by positive manufacturing data out of China.

At the closing bell, the benchmark index reset its record, rallying 0.6 per cent, or 46.9 points, to reach 7745.6, and surpassing its previous intraday high of 7,703.8 recorded during Thursday’s session.

Meanwhile, the broader All Ordinaries finished strongly, adding 0.6 per cent to 8007.1 – also a record close.

The Australian dollar was trading higher, climbing to US65.08c at the closing bell.

Betashares chief economist David Bassanese said he expected the ASX200 to reach the 8000-mark by year’s end, as the growing chance of a soft landing for the global economy bolstered the outlook for equity markets, including in Australia.

“Although the Australian corporate earnings have been going through a soft patch due to a weakened consumer and easing commodity prices, forward earnings should start to recover this year as they begin to factor in the earnings recovery expected in the 2026 and 2025 financial years,” Mr Bassanese said.

“Lower bond yields and an improving local and global growth outlook by the second-half of the 2024 financial year should also support the earnings and market outlook.”

During Friday’s session, materials stocks were the strongest performers, adding 2 per cent, as iron ore and lithium futures climbed.

Sector heavyweight BHP added 2.3 per cent to $44.92, while Pilbara Minerals surged 4.3 per cent to $4.38 and Core Lithium vaulted 14.3 per cent to 24c.

Tech stocks, echoing a record breaking session for the tech-dominated Nasdaq composite, lifted by 1.9 per cent, with Xero adding 6 per cent to $134.93.

Banks also did much of the heavy lifting. Commonwealth Bank climbed 0.8 per cent to $117.36, Westpac added 0.2 per cent to $26.41, ANZ rose 1.1 per cent to $28.75, and NAB rallied 0.6 per cent to $34.04.

Bucking the upbeat mood, health stocks shed 1.5 per cent in the sector’s worst day in almost three weeks. Sector heavyweights Cochlear sagged 3.9 per cent to $336.50, after hitting a record high during Thursday’s session, and CSL slipped 1.4 per cent to $282.35.

news.com.au