Local stocks managed a win today as Asian markets snapped a four day losing streak on news the Chinese government has proposed temporary price caps to tackle inflation. That eased worries that China could instead raise interest rates to curb inflationary pressures. The All Ordinaries Index (XAO) rose 17.7pts or 0.4pct to 4722.8 while the S&P/ASX 200 Index (XJO) fell 15.9pts or 0.3pct to 4640.2.

Financial stocks were generally lower, with the exception of AXA Asia Pacific (AXA) which rose 0.5pct to $6.23 after its entire board unanimously recommended the $13 billion bid from AMP Limited (AMP). The bid is now subject to shareholder approval and pending AMP shares remaining above $4.50. AMP today fell 1pct to $5.11.

Among the big four banks, Westpac (WBC) eased by 0.6pct to $21.80 while the Commonwealth Bank (CBA) was off 0.8pct to $49.52 and the NAB (NAB) dropped 0.3pct to $24.37. Shares in the ANZ (ANZ) fell 1.1pct to $22.58. Macquarie Group (MQG) shares added 1.2pct to $36.50.

Mining stocks were generally firmer on the back of positive metals trade and the China announcement. Shares in BHP Billiton (BHP) added 0.8pct to $43.80 while Rio Tinto (RIO) was up 0.9pct to $84.40 and Fortescue Metals Group (FMG) climbed 2.3pct to $6.73. Gold miner Newcrest (NCM) increased by 0.9pct to $40.37. Shares in Atlas Iron (AGO) added 4.4pct to $2.87 after it entered into discussions with BHP about using one of the mining giant's rail ports in the Pilbara. The move is being heralded as an opportunity for other small producers to export from the Pilbara using BHP rail.

Energy producers reversed earlier losses as the oil price rose to US$81.30 a barrel in Asian trade. Shares in Woodside Petroleum (WPL) gained 0.1pct to $40.98 while Oilsearch (OSH) added 2.3pct to $6.67 and Santos (STO) firmed by 0.3pct to $12.80. Caltex (CTX) added 1.5pct to $13.25.

Telstra (TLS) shares closed steady at $2.56.

Shares in David Jones (DJS) climbed an impressive 4pct to $4.67 after its 1Q sales came in stronger than rival Myer Limited (MYR). DJS forecast its FY growth should rise by 5-10pct. MYR closed steady at $3.79.

Healthcare stocks advanced, with CSL Limited (CSL) firmer by 0.6pct to $34.72 and Cochlear (COH) adding 1.1pct to $71.48.

Qantas (QAN) today announced that 14 of the Rolls Royce engines on its A380 fleet may have to be replaced. However the airline also forecast strong growth amongst business travellers. QAN today also ended its AFL partnership. QAN added 2.3pct to $2.73 while Virgin Blue (VBA) gained 3.5pct to $0.45.

Average weekly earnings rose by 0.4pct in the three months to August with private sector earnings up just 0.2pct and public sector wages up 1.5pct. Wages rose by 4.5pct over the year. Over the year male wages rose by 4.3pct while female wages rose by 5pct. The average wage stands at $65,457. The highest average wage can still be found in the mining sector, at $107,510 per year.

Wages in the ACT ($75,936) remain well ahead of the other states and territories due its large public sector. However the clear surprise in wage growth has been the Northern Territory ($64,745), which has now elevated itself ahead Queensland ($64,407) and Victoria ($63,809) in the pay stakes.

The ABARE Mineral and energy major projects publication has confirmed that the mining sector is once again ramping up investment. In the six month to October, 72 projects were at an advanced stage of development, totalling a record capital expenditure of $132.9 billion.

The Australian dollar ended the day's trade firmer against the major currencies at US98.45c, £0.6188 and €72.45c.

On the market overall, a total of 3 billion shares were traded, worth $5.56 billion. 597 were up, 498 were down and 371 were unchanged.

At 4.30pm AEDT on the Sydney Futures Exchange, the Share Price Index (SPI) futures contract was at 4654, up 18pts.

Ahead tonight, the Philadelphia Fed Index and leading indicators are released in the US.