Aust stocks close higher

Local market gets a kick after the US Federal Reserve's decision to continue its bond-buying program.

The Australian stock market has continued its early gains to close higher, taking its lead from record highs on Wall Street after the Federal Reserve unexpectedly kept its stimulus measures intact.

At the official market close of 1615 AEST the benchmark S&P/ASX200 index rose 1.1% to 5,295.5 points, while the broader All Ordinaries index was 1.11% higher at 5,288.6 points.

CMC Markets sales trader Betty Lam said global markets were rejoicing at the Federal Open Market Committee's surprise decision to keep its $US85 billion-a-month ($90.71 billion) bond-buying program in place.

"The Fed's pulled the rug out from market expectation worldwide this morning and investors are lapping it all up," she said.

"Taking an obvious cue from Wall Street overnight, all sectors are benefiting from the US Fed’s decision to not wind back stimulus.

"Investors have taken the opportunity to buy back in with surprisingly strong momentum for what was conclusively not such great news for the US economy."