The Australian share market climbed over one per cent to a seven month high as investors snapped up resources stocks amid higher metals prices and a greater appetite for riskier assets. The benchmark S&P/ASX200 index was up 55.3 points, or 1.17 per cent, at 4,800.6 points, while the broader All Ordinaries index had risen 55.4 points, or 1.15 per cent, to 4,872.9 points.

On the ASX 24, the December share price index futures contract was up 57 points at 4,814, with 30,755 contracts traded. City Index market strategist Michael McCarthy said resources stocks continued to strengthen on the back of investors' high risk appetite over the past two trading sessions.

Market heavyweights BHP Billiton and Rio Tinto led the share market higher, with Rio Tinto gaining $4.08, or 4.81 per cent, to $87.19, its highest level since September 2008. BHP Billiton climbed $1.55 or 3.55 per cent to $45.27, its highest level since May 2008. Oil stocks also made gains, with Oil Search adding 14 cents to $6.82, Santos putting on 23 cents to $13.08 and Woodside Petroleum climbing 86 cents to $45.75.

Major banks produced most of the selling pressure, with ANZ falling 25 cents, or 1.03 per cent, to $24.09 a day after going ex-dividend. Commonwealth Bank lost 26 cents to $48.88, National Australia Bank eased three cents to $25.97 and Westpac firmed one cent to $23.36.

Gold major Newcrest Mining surged $1.88, or 4.59 per cent, to $42.84 helped by the price of gold, which climbed to a fresh record high overnight. The spot price of gold in Sydney was $1,389.00 per fine ounce, up $34.32 from Thursday's local close of $1,354.68. Most retailers put in a lacklustre performance, with department store owner David Jones down eight cents, or 1.75 per cent, at $4.49. Myer Holdings eased three cents to $3.78 and JB Hi-Fi lost six cents to $19.13.

Major media stocks were mixed, with Fairfax Media finishing flat at $1.47. News Corporation dropped 39 cents, or 2.36 per cent, to $16.15, and its non-voting scrip fell 45 cents, or 3.02 per cent, to $14.45. Qantas Airways shares lost three cents to $2.86. Biotech company Cellmid Ltd was the top traded stock by volume with 131.2 million shares traded for a value of $8.1 million. Cellmid's stock lost 1.5 cents, or 21.13 per cent, to 5.6 cents. Preliminary national turnover reached 3.14 billion shares, worth $6.78 billion, with 780 stocks up, 389 down and 384 unchanged.

The Australian dollar soared to new heights overnight and remained near its highest point since being floated in Asia trade Friday as the impact of quantitative easing in the U.S. continued to push up the currency. Australian bonds fell on the short end of the curve as the Reserve Bank of Australia released the minutes of its Tuesday meeting, when the central bank surprised economists by raising its key cash rate 25 basis points to 4.75%.

While the central bank lowered its near term inflation target, traders slightly increased their expectations of more rate hikes to come. Still, any developments in currencies or bonds this week locally were overshadowed on Wednesday in New York when the U.S. Federal Reserve launched a fresh round of bond buying to kickstart an anemic U.S. economy.

This drove buyers into riskier assets, including commodities and the high yielding Australian dollar, which hit its highest point since the currency was floated in 1983 at $1.0176 overnight. The Australian dollar traded at $1.0149, up from $1.0049 late Thursday. Against the Japanese yen, the currency traded at 81.92, up from 81.205.