The benchmark S&P/ASX200 closed up 55.3 points, or 1.1 per cent, at 5066.5, while the broader All Ordinaries gained 55.5 points, or 1.09 per cent, to close at 5143.3.

CommSec chief equities economist Craig James said Qantas was a poor performer yesterday, mainly because it went ex-dividend, closing 28c, or 7.55 per cent, lower at $3.43.

Mr James said Harvey Norman a bell-wether stock for the discretionary retail sector would announce its earnings results today.

Harvey Norman closed up 1c at $3.65.

Mining giant BHP Billiton lifted 86c, or 2.1 per cent, to close at $41.75 and its takeover target Rio Tinto rose $1.50, or 1.2 per cent, to close at $126.50.

Commonwealth shed 53c to close at $41.10, NAB was up 14c to close at $24, ANZ advanced 12c to close at $16.20 and Westpac was 44c, or 1.94 per cent, higher at $23.14.

Woolworths was up 74c, or 2.7 per cent, to close at $28.15, Coles owner Wesfarmers inched 1c higher to close at $31.66, while David Jones dipped 6c to $4.23.

Consolidated Media fell 5c to $3.20, Fairfax was 1c poorer to close at $2.81, News Corp shed 19c to close at $16.30 and its non-voting shares dropped 17c to $15.92.

Oil prices lifted overnight for the third straight session.

Energy stocks followed suite. Oil Search was up 16c, or 2.74 per cent, to close at $5.99 and Woodside jumped $2.75, or 4.71 per cent, to $61.17.

Santos advanced 80c, or 4.12 per cent, to close at $20.20.

The spot price of gold was $US834.80 per fine ounce, up $US9.35 on Wednesday's local close of $US825.45 per fine ounce.

Lihir was up 13c, or 5.6 per cent, to close at $2.45, Newmont added 8c, or 1.57 per cent, to close at $5.18 and Newcrest rose 35c, or 1.33 per cent, to close at $26.60.

Virgin Blue Holdings was the most traded stock, with 53.13million shares changing hands, worth $27.58 million.

Market turnover reached 1.32billion shares, worth $5.63billion, with 589 stocks up, 440 down and 309 unchanged. AAP