Aust stocks close higher

Rally in financials lifts the market as RBA says falling dollar should boost business.

The Australian stock market closed higher today after a rally in financial stocks and a pleasing full-year report from retailer David Jones.

At the 1615 AEST official market close, the benchmark S&P/ASX200 index rose 0.8% to 5,275.9 points, while the broader All Ordinaries index added 0.78% to 5,270.1 points.

In economic news, the Reserve Bank of Australia released its Financial Stability Review, saying the weakening Australian dollar should help revive an anaemic local business sector.

IG analyst Chris Weston said the Australian market outperformed today despite weak Wall Street leads and flat trading in China.

"There has been buying right from the outset," Mr Weston said.

"There is even reasonable volume to accompany the move."