Australian stocks ended at a fresh six month closing high today, as the US stimulus package boosted investor sentiment around the region. Qantas (QAN) shares were also in focus after one of the airline's A380 planes suffered a mid-air emergency before landing safely in Singapore. The All Ordinaries Index (XAO) closed higher by 23.8pts or 0.5pct to 4817.6 while the S&P/ASX 200 Index (XJO) firmed by 22.7pts or 0.5pct to 4745.3.

Qantas (QAN) shares were trading higher by almost 3pct before mid-afternoon, when news filtered through than an A380 en route from Singapore to Sydney had crashed in Indonesia. The reports proved to be false, with the aircraft landing safely in Singapore a short time later, after dumping fuel when one of its engines malfunctioned. QAN shares dove on the initial reports, before closing higher by 0.7pct to $2.89.

Index leader BHP Billiton (BHP) was one of the biggest drivers, rising 2.6pct to $43.72. The Canadian government has rejected BHP's bid for the world's largest fertiliser company Potash, but at the same time left the door open for further negotiations. Investors are now speculating BHP could launch a share buy-back. Shares in Rio Tinto (RIO) eased along with weakness on the London Metals Exchange, falling 0.2pct to $83.20. Fortescue Metals Group (FMG), which benefits from a strong Australian dollar, rose 3.1pct to $6.69 while Newcrest Mining (NCM) added 1.4pct to $40.96.

In the financial sector, shares in the ANZ (ANZ) closed down 3.4pct to $24.34 as it paid out a shareholder dividend and following a broker downgrade. Shares in the CBA (CBA) lost 1.5pct to $49.14 after also receiving a downgrade from an institutional firm. Shares in Westpac (WBC) were down 0.3pct to $23.35 while the NAB (NAB) rose 0.4pct to $26. Macquarie Group (MQG) was lower by 0.4pct to $36.05.

Energy stocks rallied, with the sector rising 1.6pct. Shares in Oilsearch (OSH) rose 3pct to $6.68 while Woodside Petroleum (WPL) was firmer by 1.8pct to $44.89.

Telstra (TLS) shares added 0.8pct to $2.68.

NewsCorp (NWS) rose 0.1pct to $16.54 after reporting a 36pct rise in 1Q profit on stronger advertising revenue.

Ship builder Austal Limited (ASB) confirmed on market close that the US Navy had expressed interest in awarding a contract to the company. ASB shares had been in a halt, after rising 18.5pct to $2.95.

In economic data, retail spending grew by just 0.3pct in September, below expectations centred on a rise of 0.4pct. Non-food retailing rose by 0.4pct, the slowest growth in four months.

In the September quarter, inflation-adjusted retail trade rose by 0.7pct (below forecasts for 1.1pct growth). The measure of retail prices rose by 0.7pct in the quarter. Prices fell in four of the 15 detailed sectors.

Aussies spent up big on sporting goods in the September quarter and flocked to cafes and restaurants. But spending was down across almost half the retail categories, with specialised food outlets like butchers and seafood stores worst affected together with hardware, footwear, newsagents and clothing stores.

Australia's trade surplus narrowed from $2,446 million to $1,760 million in September. Economists had tipped a surplus near $1.9 billion. Exports fell by 1.5pct with imports up by 1.4pct.

New car sales in October were up just 0.1pct on a year ago with 80,925 passenger cars sold in the month. Sales of 4WD vehicles continue to soar up 22.9pct on a year ago.

The Australian dollar ended the day's trade at US$1.0049, £0.6237 and €71.16c.

On the market overall, a total of 2.72 billion shares were traded, worth $6.54 billion. 628 were up, 490 were down and 365 were unchanged.

At 4.30pm AEDT on the ASX24, the futures contract was at 4757, up 30pts.

Ahead tonight, weekly jobless claims and productivity data are released in the US.