Australian shares have closed higher despite slipping in afternoon trade due to concerns about a slowdown in China.

Data from China showed exports unexpectedly fell 3.1 per cents, while imports fell 0.7 per cent in June, suggesting a further slowdown in the Asian economic giant on the back of global weakness.

IG market analyst Chris Weston said the local market shed almost one per cent in afternoon trade on the back of weaker than expected Chinese figures.

“The chinese data has been a slap back to reality,” Mr Weston said.

“Chinese growth is firmly in question and that’s going to have massive ramifications for the Australian economy.”

He said the market had performed strongly before the Chinese figures were released.

The resources sector, which is heavily dependent on Chinese growth, were hit the hardest.

Global miner BHP Billiton closed 22 cents higher at $31.83 and Rio Tinto was up 35 cents to $52.39.

Gold miner NewCrest was back in positive territory after several days of heavy selling.

Its shares were up 21 cents at $9.95.

The big four banks were mixed at the close, with ANZ losing two cents to $28.64, while Westpac added nine cents to $29.04.

Commonwealth Bank was 21 cents higher at $70.35 and National Australia Bank edged three cents higher to $29.45.

Macquarie Group rose $1.38, or 3.17 per cent, to $44.89 after the release of positive broker reports on Tuesday.

Meanwhile, the Westpac-Melbourne Institute consumer sentiment remained in positive territory in July, despite a small monthly slip, assisting the share market.

KEY FACTS

* At the close on Wednesday, the benchmark S&P/ASX200 index was 19.7 points, or 0.4 per cent, higher at 4,901.4.

* The broader All Ordinaries index was up 18.9 points, or 0.39 per cent, at 4,885.4.

* On the ASX 24, the September share price index futures contract was 28 points higher at 4,869, with 26,955 contracts traded.

* National turnover was 1.2 billion securities worth $2.9 billion.