Australian shares closed higher on Friday, as Wall Street markets rose, buoyed by the technology sector.

The S&P/ASX 200 rose 0.48%, or 42.20 points, to close at 8,903.90, setting a new 50-day high point.

All three major Wall Street stock indices rose amid a technology stock rally after Taiwan Semiconductor Manufacturing (TSMC) forecasted revenue growth of close to 30% in 2026 and delivered better-than-expected quarterly results.

The Taiwanese firm reported earnings of NT$19.50 per share for the fourth quarter of 2025 on net sales of NT$1.046 trillion. Analysts polled by FactSet expected EPS of NT$18.13 and net sales of NT$1.031 trillion.

Oil fell after US President Donald Trump softened talk of intervention in Iran.

On the domestic front, Australian consumers in December expected a 4.6% rate of inflation in the next 12 months, marginally under the 4.7% rate anticipated in November, but still well above the inflation target of the nation's central bank.

Australian consumer "inflation expectations have been relatively stable in recent months. Notwithstanding this stability, expectations remain above their levels at this time last year," reported the Melbourne Institute of Applied Economic and Social Research.

In company news, James Hardie Industries (ASX:JHX) is set to close the manufacturing facilities in Fontana, California, and Summerville, South Carolina, within the next 60 days, and the sites' manufacturing operations will be absorbed by other facilities. Its shares rose over 2% at market close.

Capstone Copper (ASX:CSC) said it achieved record quarterly consolidated copper production of 58,273 tonnes for the fourth quarter of 2025. Its shares rose over 7%.

Lastly, Rio Tinto Group (ASX:RIO) said that Amazon Web Services will become Rio's unit, Nuton Technology's first customer under a two-year strategic collaboration agreement. Its shares closed up nearly 1%.