The S&P/ASX 200 index was up 1.1% at 6,725.70 by 2350 GMT, its best session since Jan. 19, after ending about 2% lower on Thursday. But it was on track to rise 1.7% in January, its fourth straight monthly gain.
Financials also eased, with wealth manager Perpetual Ltd losing most in the sector, dropping nearly 5%. Insurance Australia Group and Macquarie Group also pulled back.
"We've seen how quickly this can explode, so there is a concern that this could become another Victoria situation," James Tao, market analyst at CommSec said.