The Australian share market has closed higher as bargain hunters piled into most of the major banks, and the big miners found support from investors betting on further economic stimulus measures in China.
US stocks have finished mostly lower after a short-lived jump that came when the Federal Reserve's policy meeting minutes cast doubt on an interest rate hike in June.
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The Australian share market gained nearly 0.7 per cent but it was considered disappointing given the stronger leads provided by European and US markets.
The Australian dollar has surged past 81 US cents to an almost four month high on speculation the Federal Reserve could delay raising its interest rate.
Wall Street stocks have finished lower as worries over higher US Treasury bond yields offset Verizon's $US4.4 billion ($A5.58 billion) takeover of AOL.