CMC Markets chief strategist Michael McCarthy said local investors were feeling more optimistic after a strong earnings season in the US. “We’ve had a much more positive season in the US and that I think has got local investors more optimistic about the earnings outlook,” he said.”We’ve also got a lot of people who are more overweight (in) cash and they’ve seen their neighbours earn a lot on the market and they’re getting a bit nervous about not being in it.” He said local investors were also turning to high-yielding stocks, with financials, telcos and consumer discretionary shares leading the charge.

The four major banks all closed higher. National Australia Bank soared 64 cents to $28.00, Westpac jumped 26 cents to $28.30, Commonwealth Bank surged 60 cents to $65.05 and ANZ gained 16 cents to $26.74. Telstra gained five cents to $4.65. The mining giants also all gained. BHP Billiton closed 44 cents higher to $37.92, Rio Tinto jumped 84 cents to $67.20 and Fortescue added 11 cents $4.79.(Read more:www.news.com.au)