Australian stocks managed to reverse a weak start and close in positive territory for the first trading day of the week. The All Ordinaries Index (XAO) added 16.5pts or 0.4pct by close to 4706.7 as the Dow Futures pointed to a strong open on Wall Street.

Markets around the Asian region were mixed. Seoul turned lower after the South Korean President rebuked North Korea over its military provocations. Japan's share market moved higher with investors cheered by strong retail sales in the US on Black Friday.

Financial stocks started the day's trade on a wobbly note, but all managed to record solid gains towards the end of the day's trade. Clarification surrounding the European Union bailout for Ireland is tipped to support financial stocks offshore tonight. Shares in the Commonwealth Bank (CBA) were the strongest out of the big four, rising 2.1pct to $48.57. Westpac (WBC) added 1.9pct to $21.55 while the ANZ (ANZ) gained 1.2pct to $22.78. The National Australia Bank (NAB) announced today it has identified and fixed the computer problem which left some of its customers without cash. NAB shares firmed by 1.3pct to $23.53. Macquarie Group (MQG) ended the day's trade at $35.57, up 0.3pct.

AMP Limited (AMP) has made the first step in moving towards its takeover of AXA Asia Pacific (AXA). The two companies have signed formal documents, however the complete takeover is still subject to regulatory and shareholder approval. AMP shares eased by 0.4pct to $5.09 while AXA shares slumped 0.3pct to $6.18.

Mining stocks finished off their lows. BHP Billiton (BHP) gained 0.1pct to $43.24 by close while Rio Tinto (RIO) ended down 0.2pct to $83.84. Fortescue Metals Group (FMG) ended lower by 1.7pct to $6.54 while Newcrest Mining (NCM) lost 1.5pct to $39.77 in response to a weaker gold price.

Energy stocks were generally positive. The oil price was higher at US$84.18 a barrel in late Asian trade with Woodside Petroleum (WPL) adding 1.9pct to $41.71 by close and Santos (STO) up 0.5pct to $12.37. Caltex (CTX), which had been trading lower for most of the day, gained 1.1pct to $13.37.

Telstra (TLS) shares closed the day's trade down 0.4pct to $2.84. Legislation to structurally separate Telstra´s wholesale and retail arms passed Federal Parliament this afternoon.

Elsewhere on the board, retail stocks were generally higher, with JB Hi-Fi (JBH) adding 1.6pct to $18.86 and Woolworths (WOW) firmer by 0.1pct to $26.97. Australia's largest freight operator, QR National (QRN), fell 2.5pct to $2.77 a week after listing on the ASX. Shopping centre owner Westfield (WDC) gained 0.7pct to $12.30.

In economic data today, business indicators revealed company profits fell by 1.5pct in the December quarter, led by the construction sector. Excluding mining, profits fell by a much larger 3.3pct in the quarter. Profits rose in just five of the 15 industry sectors.

Sales fell in ten of the 15 industry sectors in the September with aggregate sales down by 0.9pct. Sales in the mining states of Northern Territory and Western Australia outperformed.

Inventories (stocks) held by businesses fell by 0.8pct in the September quarter in inflation-adjusted terms.

New home sales rose by 2.4pct in October. Over the past six months home sales have fallen by over 20pct.

According to the Australian Institute of Petroleum the national average retail pump price rose 0.7 cents a litre last week to 125.0 cents a litre, a 15 week high. The Singapore unleaded price is holding at five month high in Aussie dollar terms and will continue to filter through to domestic pump prices.

The Australian dollar ended the day's trade at US96.36c, £0.6173 and €72.85c.

On the market overall, a total of 2.35 billion shares were traded, worth $4.65 billion. 504 were up, 596 were down and 359 were unchanged.

At 4.30pm AEDT on the ASX24, the futures contract was at 4619, up 22pts.

Ahead tonight, the Chicago Midwest index and Texas manufacturing outlook survey are scheduled.