The Australian market has posted a nine-month closing high dragged upwards by gains in the major banks.

The finance and materials sub-indices demonstrated their dominance of the overall stock market - they were the only two sectors to rise, with the other eight groups falling, yet the overall market gained 0.5 per cent.

The All Ordinaries index finished at 4,271, while the ASX 200 gained 19 points to 4,263.

Major movers

ANZ and NAB led the charge of the big banks, with both up 2.5 per cent, and CBA and Westpac both up by just under 2 per cent. The banks have benefited from broker upgrades as the wave of economic optimism has led analysts to upgrade their profit forecasts. The ANZ also gained after sources told several media outlets that ANZ is close to a deal worth around $1 billion to purchase some of RBS' Asian assets.

ANZ and NAB led the charge of the big banks, with both up 2.5 per cent, and CBA and Westpac both up by just under 2 per cent. The banks have benefited from broker upgrades as the wave of economic optimism has led analysts to upgrade their profit forecasts. The ANZ also gained after sources told several media outlets that ANZ is close to a deal worth around $1 billion to purchase some of RBS' Asian assets. Aquarius Platinum was amongst the best gaining miners, surging 8 per cent on a broker upgrade.

Aquarius Platinum was amongst the best gaining miners, surging 8 per cent on a broker upgrade. Wheat exporter GrainCorp jumped 6.7 per cent to $8.00 after it raised its profit forecast for a second time. Competitor AWB also gained 4.2 per cent on the news.

Wheat exporter GrainCorp jumped 6.7 per cent to $8.00 after it raised its profit forecast for a second time. Competitor AWB also gained 4.2 per cent on the news. Sino Gold picked up 2.8 per cent on the discovery of gold mineralisation near its White Mountain mine in China.

Sino Gold picked up 2.8 per cent on the discovery of gold mineralisation near its White Mountain mine in China. Industrial and mining equipment maker Bradken led a charge by those companies that provide goods and services to the mining industry. It was up 5.1 per cent to $5.55.

Industrial and mining equipment maker Bradken led a charge by those companies that provide goods and services to the mining industry. It was up 5.1 per cent to $5.55. Casino operator Crown slipped 2.9 per cent to $7.28 after a broker downgrade.

Casino operator Crown slipped 2.9 per cent to $7.28 after a broker downgrade. Property groups were also generally weaker, with Mirvac slipping 2.8 per cent.

World markets

Chinese stocks helped drive the main index of Asia-Pacific stocks (excluding Japan) to an 11 month high, as two surveys showed accelerating Chinese factory output growth. Car and tyre makers were among the biggest winners, after the US Government announced increased funding for its "cash for clunkers" program to encourage households to trade up to more fuel efficient vehicles.

In Tokyo, the Nikkei finished flat at 10,352.

In Tokyo, the Nikkei finished flat at 10,352. Hong Kong's Hang Seng was up 1 per cent at 5:38pm (AEST).

Hong Kong's Hang Seng was up 1 per cent at 5:38pm (AEST). Mainland China's Shanghai composite index gained 1.5 per cent to 3,463, its highest level since March last year.

Mainland China's Shanghai composite index gained 1.5 per cent to 3,463, its highest level since March last year. Singapore's main share index was flat at 2,659.

European markets have opened up, and US stock futures are also higher.

West Texas crude oil has surged back above $US70 a barrel, and was fetching $US70.91 at 5:48pm, and Tapis is worth $US73.93.

Gold has also surged almost $US15 to $US953.38 an ounce, largely on today's sharp decline in the US dollar.

The US dollar has fallen to its lowest level so far this year, and that decline helped the Australian dollar hit a 10-month high.

It hit a peak of 83.94 US cents, which is its highest level since last September.

The resurgence is due to increased optimism about a global economic recovery, and demand for currencies linked to commodities. At 5:53pm the Australian dollar was fetching: