Australian stocks finished mildly higher as investors took their cues from Japan, amid renewed interest in local mining stocks.

The Tokyo market surged by as much as 3.5 per cent during their trading day as a further drop in the yen ignited the buying of Japanese shares.

And Australian investors brushed aside negative sentiment following the release of weak US employment figures last Friday.

EL&C Baillieu Stockbroking director Richard Morrow said the strength of the Japan market and investor interest in commodities supported the local market.

“A bit of that is rubbing off on to us today in the absence of anything enormously bearish coming from the northern hemisphere,” Mr Morrow said.

Local stocks suffered falls last week, prompting investors to jump back into gold and base metal stocks on Monday, despite soft commodity prices.

Resources stocks were among the strongest performers, with the bourse’s biggest stock, BHP Billiton, up 42 cents, or 1.3 per cent, at $32.66.

Fortescue Metals was one cent higher at $3.58 and Rio Tinto shed 76 cents to $54.84.

Gold stocks performed strongly, with Newcrest surging 38 cents to $19.18 and Alacer Gold gaining nine cents, or 2.57 per cent, to $3.59.

The four major banks were mixed, with ANZ up 11 cents to $27.86, Westpac 27 cents higher at $30.52 and Commonwealth Bank nine cents up at $67.02.

National Australia Bank gained one cent to $30.58.

Insurer and lender Suncorp was 15 cents, or 1.3 per cent weaker at $11.55, and Macquarie Group was 63 cents, or 1.7 per cent, down at $36.00.

KEY FACTS

* At the close on Monday, the benchmark S&P/ASX200 index was 14.1 points, or 0.29 per cent, higher at 4,905.5.

* The broader All Ordinaries index was 13.5 points, or 0.28 per cent, firmer at 4,912.7.

* The June share price index futures contract was 11 points up at 4,906, with 23,678 contracts traded.

* National turnover was 1.4 billion securities worth $3.5 billion.

AAP krc/jmc