At noon AEDT on Friday, the benchmark S&P/ASX200 index was up 25.9 points, or 0.37 per cent, to 6,951.4, while the broader All Ordinaries had gained 23.2 points, or 0.33 per cent, to 7,140.9.
However with just a few hours left in the week, the ASX200 was still down 1.4 per cent from last Friday's close, on track for its third straight week of losses.
The index was also down 1.2 per cent for the year after hitting an 11-month low on Wednesday. The sell-off has been driven by US bond prices falling, sending 10-year Treasury yields this week to 16-year highs, which makes equities look less attractive.
CommSec chief economist Craig James said the monthly US non-farm payrolls report due to be released late Friday night AEDT was the next important hurdle for the bond market.
"A strong reading would have the potential to push yields towards five per cent, a level last seen over 20 years ago," he wrote.
That would put further pressure on equities, while softer wage growth and a modest lift in the jobless rate would give investors confidence that a "soft landing" for the world's biggest economy was achievable, Mr James said.
Four of the ASX's 11 sectors were higher at midday, five were lower and utilities and tech were basically flat.
The financial sector was the biggest mover, gaining 1.3 per cent.
Westpac and NAB were both up 1.8 per cent, CBA added 1.5 per cent and ANZ climbed 1.4 per cent.
Magellan Financial Group plunged 12.7 per cent to a nearly six-month low of $7.69 after the ailing investment manager disclosed it experienced net outflows in September of $2 billion, leaving it with $35 billion in assets under management.
In the heavyweight mining sector, Rio Tinto was up 0.9 per cent and Fortescue and BHP both added 0.5 per cent.
Lithium miners Allkem and Pilbara had fallen to six month lows - falling 2.5 per cent to $10.74 and 1.5 per cent to $3.88, respectively - amid a drop in demand for the battery metal on the back of the US autoworkers strike.
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