The Australian share market is higher at noon as bargain hunters step in amid stronger iron ore prices and a solid production report from Rio Tinto.

CMC Markets analyst Ric Spooner said the Australian market was performing well, considering the lacklustre performance in the US overnight.

“We’re seeing a continuation of bargain hunting, with that quite strong buying that we saw on our local market on Tuesday,” Mr Spooner said.

A strong production report from Rio Tinto bolstered the resource sector while the iron ore price remains firmer.

Mr Spooner said buyers were finding good value in resources stocks as well as high yielding stocks such as the big banks and Telstra.

At 1200 AEDT, Rio Tinto was 52 cents, or 0.86 per cent, higher at $61.26 after the global miner announced that it shipped a record 78 million tonnes of iron ore during the September quarter.

BHP Billiton rose 32 cents to $33.77 and Fortescue Metals added 6.5 cents to $3.71.

Among the major banks, Commonwealth Bank rose 63 cents to $74.75, ANZ gained two cents to $31.17, Westpac lifted 4.5 cents to $32.18, while National Australia Bank was 14 cents higher at $32.36.

Telstra was up eight cents to $5.37.

US stocks finished mixed overnight as the market shifted from a three-day slump.

The Dow Jones Industrial Average dipped 0.04 per cent, the broad-based S&P 500 gained 0.16 per cent and the tech-rich Nasdaq Composite Index rose 0.32 per cent.

The market will watch closely the release of Chinese inflation figures in afternoon trade.

KEY FACTS

* At 1200 AEDT on Wednesday, the benchmark S&P/ASX200 index was up 21 points, or 0.4 per cent, to 5,233.5 points.

* The broader All Ordinaries index was up 22 points, or 0.42 per cent, to 5,226 points.

* The December share price index futures contract was 33 points higher at 5,212 points, with 10,378 contracts traded.

* National turnover was 540 million securities worth $1.3 billion.