Aust stocks close higher

The Australian stock market has closed nearly 1% higher after more dovish talk in the United States pushed the Dow Jones Industrial Average to a record close.

At the 1615 AEDT official market close, the benchmark S&P/ASX200 index added 0.9% to 5,335.9 points, while the broader All Ordinaries index increased 0.87% to 5,330.3 points.

IG analyst Stan Shamu noted the US Senate Banking Committee's approval of monetary policy dove Janet Yellen to chair the Federal Reserve, before the Dow closed above the key threshold of 16,000 points for the first time.

"[St Louis Fed president] James Bullard was on the wires supporting the need for more quantitative easing," Mr Shamu added.

"It's risk-on in Asia as investors react to a buoyant performance in US markets," he said.

"The ASX 200 has bounced back after having struggled all week."

Financials were mostly higher.

ANZ rose 0.7% to $31.68 and Commonwealth Bank added 0.51% to $76.49.

National Australia Bank lifted 0.65% to $33.92 and Westpac rose 0.65% to $32.50.

Investment bank Macquarie Group rose 2.06% to $54.50.

In insurance, IAG rose 1.16% to $6.12, Suncorp rose 1.65% to $13.55 and QBE increased 1.59% to $15.95.