The Australian stock market has closed higher, lifted by hefty gains from the big miners and major banks. The benchmark S&P/ASX200 index was up 82.1 points, or 1.87 per cent, at 4,462.4 points, while the broader All Ordinaries index had risen 77.3 points, or 1.76 per cent, to 4,477.3 points.

On the Sydney Futures Exchange, the September share price index contract was 80 points higher at 4,439 points, with 25,812 contracts traded. The market jumped out of the gates at the opening bell, climbing 1.5 per cent thanks to a bright finish on Wall Street and firmer commodities prices during the offshore session.

The market held on to those early gains for most of the session, before closing on its highs for the day thanks to a late spurt just before the end of trade. At the finish, about 11 stocks closed up for every five that ended down, with 19 among the S&P/ASX20 closing in positive territory and financial stocks the top six best performers.

Westpac was the biggest mover climbing 3.23 per cent, or 72 cents, to $22.98, while Commonwealth Bank was not far behind, up 3.12 per cent, or $1.56, at $51.49.

The lone stock in red figures in the S&P/ASX20 was CSR, down four cents at $33.76. The other retail banks also had a good day. ANZ advanced 55 cents, or 2.47 per cent, to $22.80 and NAB was up 40 cents, or 1.64 per cent, at $24.80.

The big miners were well supported during the day, posting rises of more than two per cent and partially reversing the previous day's heavy selloff.

BHP Billiton rose 78 cents to $38.40, while Rio Tinto finished up 83 cents at $67.38. Rio said in a review of second quarter operations that growth was firmly back on its agenda and there was a range of expansion and investment options competing for capital. Fortescue Metals was up 12 cents at $4.38.

In other news on Wednesday, Qantas said it had brought forward by two years delivery of its first Boeing 787 Dreamliners, which have been plagued by production difficulties. Qantas was up two cents at $2.32, while fellow airline Virgin Blue fell half a cent to 31.5 cents.

In a positive sign for retailers, figures released on Wednesday showed consumer confidence rose strongly in July, with a roughly seven per cent increase in consumers' opinion on whether now was good time to buy a major household item. Some of the larger movers in the retail sector were Coles owner Wesfarmers, which rose 2.22 per cent, or 63 cents, to $29.06 and David Jones, which closed two per cent, or nine cents, higher at $4.59.

Shares in Indophil Resources NL dropped dramatically after it said it couldn't gain clarity on a government proposal to ban open pit mining in South Cotabato, the Philippines. Its shares sank 46.5 cents, or 42.47 per cent, to 63 cents at the close after hitting a low of 50 cents on Wednesday.

The spot price of gold in Sydney was $1,213.10 per fine ounce, up $14.80 from Tuesday's close of $1,198.30. Newcrest Mining edged 44 cents higher to $35.27, while Lihir Gold was six cents firmer at $4.36. The most traded stock by volume was Samson Oil and Gas, with 109.64 million securities changing hands for $7.01 million.

Samson, which released an update on its North Stockyard oil field operations, rose seven tenths of a cent to 6.5 cents. Preliminary market turnover was 1.69 billion shares worth $3.54 billion, with 701 stocks up, 318 down and 303 unchanged.

The Australian dollar rallied and bond prices slid in Asia trade Wednesday, moved by a better than expected earnings report from chip making giant Intel and a robust consumer sentiment report in the country. Setting off Australian dollar gains early Wednesday, Intel posted its strongest quarterly results in years, topping Wall Street forecasts broadly.

The report lifted stock futures in the U.S., Asian equities and the highly correlated Australian dollar as traders continue to focus their attention to the start of quarterly earnings season in the U.S. From there, the currency was further lifted by two strong reports on the Australian consumer.

Only a week after the country's June labor report showed unemployment in the country dipped to 5.1% leading to growing calls for a rate hike from the Reserve Bank of Australia in August an index of consumer sentiment in Australia rose 11.1% in July from June, according to compilers Westpac Banking Corp. and the Melbourne Institute. In addition, an index of job vacancies for skilled workers in Australia rose 0.3% in July from June and is up 23% from a year earlier, the Department of Employment said Wednesday.

The Australian dollar was quoted at $0.8810, up from $0.8720 late Tuesday. Against the Japanese yen, the Australian dollar was recently at 78.34 from 77.19.

Provided by Morrison Securities