Australian shares closed at a three-month high on the back of improved investor sentiment towards the resources sector.

At the close on Tuesday, the benchmark S&P/ASX200 index was up 19 points, or 0.44 per cent, at 4,291.6, while the broader All Ordinaries index was up 18.5 points, or 0.43 per cent, at 4,311.4.

On the ASX 24, the September share price index futures contract was 19 points higher at 4,249 with 19,335 contracts traded.

The ASX200, an index of the top 200 Australian-listed companies by market value, is at its highest level in nearly three months after the market’s second consecutive day of firmer finishes.

Bourses in the US and Europe gained overnight after the German government backed a bond-buying plan, raising hopes of action on the euro zone sovereign debt crisis.

“Resources led the gains, it was a strong night for commodities and risk sentiment is still fairly resilient across the board,” IG Markets market strategist Stan Shamu said.

Locally, some of the first companies to post results from the 2011/12 financial year disappointed investors.

Construction firm Leighton was the first big company to release its full year profit, disappointing the market as did hearing device maker Cochlear and toll road operator Transurban.

Leighton made a greatly reduced first half profit of $115 million.

Its shares were down 25 cents, or 1.5 per cent, at $16.48.

Cochlear fell $3.40, or 5.1 per cent, to $63, after its full year profit dropped 68 per cent due to the costs of a recall of one of its bionic ear implants.

Transurban closed nine cents, or 1.5 per cent, weaker at $5.94, after announcing its full year profit was down 51 per cent.

A brighter figure came from mining equipment maker Bradken, which announced a 49 per cent rise in net profit to $100.5 million, thanks to its exposure to the booming resource sector.

Its shares leapt up 58 cents, or 11.24 per cent, to $5.74.

Elsewhere, resources were stronger with BHP Billiton up 16 cents to $32.16 and Rio Tinto 72 cents higher at $54.85.

BlueScope Steel was the best performer among the market’s top 100 companies, up 1.5 cents, or 5.7 per cent, at 28 cents.

Whitehaven Coal was also higher, up 19 cents, or 5.2 per cent, at $3.85.

Among the major banks, Westpac was the stand-out performer, gaining 23 cents or nearly one per cent to $23.45, ANZ was up 10 cents at $23.66, National Australia Bank was 14 cents higher at $25.30 and Commonwealth Bank was up 44 cents at $56.82.

National turnover was 1.25 billion shares worth $3.07 billion with 458 stocks up, 396 down and 358 unchanged.

The price of gold in Sydney closed at $US1,611.79 per fine ounce, up $US5.94 from $US1,605.85 on Monday