The Australian share market has finished a touch higher as investors reacted positively to strong earnings reports from major companies.

However, the gains were trimmed late in afternoon trade following the release of weaker manufacturing numbers from China, CMC Markets analyst Ric Spooner said.

“The key driver for us, after a stronger move, was the release of a disappointing PMI figure from China,” Mr Spooner said.

“We’ve had a bit of an unusual day because we got a weak lead from US markets but we ended up getting a bit stronger with the general mix of our earnings results.”

AMP, Leighton Holdings, Fairfax, and Myer all performed well.

Myer has again called on rival David Jones to consider a merger between the two department stores, sending Myer shares up 10 cents to $2.56, while David Jones had climbed five cents to $3.25.

Fairfax Media shares had soared 16 cents, or 23 per cent, to 88 cents after it reported improved underlying profit and earnings in the first half of the financial year.

Shares in construction and engineering group Leighton were up 80 cents to $17.21 after it lifted full year profit by 13 per cent.

AMP shares were 42 cents higher at $4.92 after its full year profit came in ahead of expectations, despite a two per cent fall in full year profit.

But the resources sector missed out on the gains.

BHP Billiton was down four cents at $39.70, Rio Tinto was 61 cents lower at $69.59 and Fortescue Metals was up three cents at $5.87.

KEY FACTS

* At the close on Thursday, the benchmark S&P/ASX200 index was 4.1 points, or 0.08 per cent, higher at 5,412.3.

* The broader All Ordinaries index was up 5.8 points, or 0.11 per cent, at 5,421.3.

* The March share price index futures contract was flat at 5,377, with 26,896 contracts traded.

* National turnover was 1.83 billion securities worth $5.58 billion.