The Australian sharemarket has closed slightly higher in a mostly quiet day as holidays in key Asian markets kept activity to a minimum, and after receiving mixed overseas leads.

The benchmark S&P/ASX200 Index inched up 8.4 points, or 0.2 per cent at 4633.6, while the broader All Ordinaries Index eked out 5.3 points or 0.1 per cent to 4680.

Of the major sectors, materials took in 0.7 per cent, while energy slumped 0.1 per cent and financials closed flat.

Volumes were below average as markets in Japan, China, Hong Kong and South Korea were closed for public holidays.

IG Markets analyst Ben Potter said the Australian bourse is very much in a holding pattern, trapped in a range between 4600 and 4650.

"The backdrop for equities remains very supportive, especially given this week's dovish comments from the Federal Reserve," he said.

"They said they were ready to step into the market with further quantitative easing should it be necessary, which is supportive for global equities."

"On the flip side, there are a few participants out there who feel equity markets are due for a decent pullback given how far and fast they have rallied. Also, there's some concern that end-of-year mutual fund tax loss selling could be the catalyst needed to push US markets lower before a turn higher into Christmas," Mr Potter said.

Among the big miners, BHP Billiton finished up 32 cents at $39.22, despite news Potash Corp of Saskatchewan asked a US court to block a $US39 billion ($A40.93 billion) hostile takeover by BHP Billiton on the grounds BHP has made ''false statements and half-truths'' to try to manipulate the perceived value of the Canadian company.

Rival Rio Tinto advanced $1.14 cents, or 1.5 per cent, to a five-month high of $76.04. Junior miner Fortescue Metals Group climbed 1.01 per cent to $4.99.

The large retail banks closed mixed as ANZ edged up 6 cents to $23.87, National Australia Bank finished 9 cents firmer at $25.95 and Westpac rose 17 cents to $23.72. Commonwealth Bank of Australia slipped 0.13 per cent to $52.43.