The Australian sharemarket closed at a 20-month peak as high-yield stocks made strong gains.
At the close today, the benchmark S&P/ASX 200 index was up 22.4 points, or 0.47 per cent at 4810.2, while the broader All Ordinaries index gained 21.7 points, or 0.45 per cent, at 4833.8.
The market closed at its highest level since May 2011.
On the ASX 24, the March share price index futures contract was 28 points higher at 4781, with 21,108 contracts traded.
RBS Morgans private client adviser Bill Bishop said many investors were now looking at high yield stocks such as the major banks and Telstra because of Australia's low interest rates.
"The low interest rates are driving some money out of bank deposits and into the stock market," he said. "There's some offshore interest also."
The four major banks all made gains. Commonwealth Bank rose 57c to $63.24, National Australia Bank rose 34c to $27.09, Westpac rose 35c to $27.10 and ANZ rose 6c to $26.
Telstra was up 5c, or 1.11 per cent, to $4.56.
However, the mining giants closed mixed. BHP Billiton rose 10c to $37.16 but Fortescue fell 3c to $4.63 and Rio Tinto fell 16c to $66.29.
Women's fashion retailer Noni B plunged 13.79 per cent to 75c after it announced that its interim net profit would fall to between $1.7 million and $1.9m from $2.4m in the previous corresponding period.
US stocks closed higher yesterday buoyed by strong earnings results in the technology sector and progress in the Washington fiscal budget debate.
The Dow Jones Industrial Average rose 67.12 points, or 0.49 per cent, to 13,779.33, its highest level since October 2007.
Locally national turnover was 1.61 billion shares worth $3.919 billion, with 460 stocks up, 508 down and 334 unchanged.
