Aust stocks close stronger

Buying in yield stocks boosts local market after RBA's rate cut hint yesterday.

The Australian sharemarket has closed stronger today, boosted by buying in yield stocks after the Reserve Bank of Australia yesterday hinted it was open to cutting interest rates further if needed. 

At the 4.15pm (AEST) official market close, the benchmark S&P/ASX200 index rose 33.8 points, or 0.62%, to 5,525 points, while the broader All Ordinaries index gained 32.3 points, or 0.59%, to 5,511.8 points.

IG chief market strategist Chris Weston noted RBA governor Glenn Stevens' speech yesterday, where the central bank boss said "ammunition" on interest rates was still available.

"Glenn Stevens seems to have done enough to plant doubt among the speculators that rates could be cut in the future," Mr Weston said.

"Naturally, any stock that has a yield of any significance is doing nicely again today.

"The ASX 200 has had a strong week with the benefit of better sentiment towards China and signs the central bank could become more accommodative in the coming months."

Financials were stronger across the board.