Aust stocks hold gains at noon

The Australian stock market held early gains to sit almost 0.7% higher at noon, despite a lacklustre Wall Street lead as investors awaited easing hints from a United States Federal Reserve policy meeting this week.

At 1205 AEST, the S&P/ASX 200 benchmark index rose 0.68% to 5,081.5 points, while the broader All Ordinaries index lifted 0.7% to 5,061.4 points.

CMC Markets analyst Ric Spooner said the local market was likely to extend its recent run of low volatility trading days as investors awaited key news events over the next three days.

"While the market will closely analyse tomorrow morning’s Fed statement, economic data over the next few days may have more potential to change investor outlook and move prices.," Mr Spooner said.

"Against the background of recent negative news flow from China, worse than expected data on the US economy or international manufacturing PMI’s, could unsettle industrial commodities."

Financials supported the market, with the big four banks posting solid gains.

Financial stocks were higher across the board.

Commonwealth Bank rose 0.74% to $74.575, while ANZ Banking Group added 1.06% to $29.905.

National Australia Bank lifted 0.61% to $31.38, while Westpac Banking Corporation increased 1.36% to $31.28.

Investment bank Macquarie Group climbed 1.24% to $43.96.

In the insurance sector, QBE grew 1.06% to $16.645, Insurance Australia Group gained 0.52% to $5.83 and Suncorp added 1.3% to $12.895.

Materials were mixed, with the major miners both losing ground.

Rio Tinto lost 0.05% to $57.68, while BHP Billiton slipped 0.24% to $34.865.

Fortescue Metals dropped 0.67% to $3.685.

Whitehaven Coal shed 0.75% to $1.98, while Newcrest lifted 0.93% to $12.415.

In energy, Santos grew 0.44% to $13.75, Oil Search gained 1.63% to $8.09 and Woodside lifted 0.8% to $37.68.

The retail sector was mostly higher.

Wesfarmers gained 1.52% to $40.83, while Woolworths rose 0.8% to $33.485.

Myer was flat at $2.68 while rival David Jones put on 0.56% to $2.685.

Harvey Norman was flat at $2.66 while JB Hi-Fi shed 0.48% to $18.57.

Media stocks were mixed, with Fairfax Media flat at 48.5 cents and 21st Century Fox losing 0.53% to $33.075.

Meanwhile Ten Network lifted 0.93% to 27.25 cents and Southern Cross Media added 0.69% to $1.455, while Seven West rose 2.4% to $2.13.

Blue chip Telstra put on 0.5% to $5.025, while Qantas lost 0.79% to $1.26.