SYDNEY- The Australian share market closed slightly higher on Wednesday after a positive reaction to Westpac's earnings result, a strong performance by gold stocks and some encouraging economic data.

At 1615 AEDT the benchmark S&P/ASX200 index was up 8.6 points, or 0.19 per cent at 4540.1, while the broader All Ordinaries index advanced 7.6 points, or 0.17 per cent, to 4547.6.

On the Sydney Futures Exchange at 1616 AEDT, the December share price index contract was up 15 points at 4,533 on a volume of 24,305 contracts.

The Australian market opened firmer but dipped into negative territory during afternoon trade before edging higher towards the close.

Westpac reported a 10.7 per cent decline in full year profit for the year to September 30, but the bank said its business has strong momentum going into fiscal 2010 as the bad debt cycle stabilised.

Its shares closed up 36 cents, or 1.42 per cent, to $25.79

Commonwealth Bank ended nine cents higher at $51.37, ANZ gained 15 cents to $22.73 and Macquarie Group was up $1.02 cents, or 2.17 per cent, at $48.09.

NAB closed down 24 cents, or 0.85 per cent, at $28.15.

Austock Securities senior client adviser Michael Heffernan said the Westpac result supported the broader market.

"The positive influences on the market was the result we had from Westpac Bank, which wouldn't set your ears back but it exceeded most expectations," Mr Heffernan said.

Mr Heffernan described Westpac's result, as "workmanlike", similar to the results from NAB and ANZ last week but very good compared with counterparts overseas.

"When you look at the banks here, not only are they making profits - in the US and the rest of the world they are making losses - not only that they are paying dividends and very strong ones at that," Mr Heffernan said.

"They've performed very well indeed in this very difficult environment."

At 1622 AEDT, the spot price of gold in Sydney was US$1,083.60 per fine ounce, up US$19.63 on Tuesday's closing price of US$1,063.97.

Gold stocks ended higher.

Lihir Gold was up 14 cents, or 4.42 per cent, at $3.31, while Newcrest Mining increased $1.07, or 3.21 per cent, to $34.45.

"Gold is certainly the flavour of the day," Mr Heffernan said.

"Kingsgate Consolidated and AngloGold were two of the biggest movers on the market today."

AngloGold gained 70 cents, or 8.32 per cent, to $9.11, while Kingsgate was 79 cents, or 10.39 per cent, higher at $8.39.