The Australian share market has hit a five year high, with investors inspired by China’s economic growth.

Positive economic data out of China, strong Australian consumer sentiment and the likelihood of a non-violent outcome in Syria all contributed to Wednesday’s rally on the local market.

That took the All Ordinaries and ASX200 indices to their highest closing levels since late June, 2008.

IG Markets analyst Chris Weston said investors were prepared to overlook global economic concerns to focus on growth prospects.

“The Chinese market is the inspiration behind our market’s gains,” Mr Weston said.

“Global equities are in a bit of a sweet spot at the moment.”

Mr Weston said Chinese growth was pushing higher than many people had anticipated.

That trend looks set to continue as policymakers seek to attract foreign capital, and stem flows out of China.

The local market came out of the blocks early after an overnight rally on international markets as the Obama administration appeared to pursue a diplomatic solution to the Syrian conflict.

Local gains were led by the materials sector, with particular strength in iron ore stocks thanks to a renewed interest in China.

BHP Billiton added 43 cents to $36.33, Rio Tinto gained $1.27 to $64.15 and Fortescue Metals Group was 29 cents higher at $4.80.

Among the major banks, National Australia Bank added 41 cents to $33.85, ANZ gained 23 cents to $30.40, Commonwealth Bank was 24 cents higher at $74.14 and Westpac rose seven cents to $32.48.

Macquarie Group gained $1.59 to $48.55.

KEY FACTS

* At the close, the benchmark S&P/ASX200 index was up 33.2 points, or 0.64 per cent, at 5,234.4.

* The broader All Ordinaries index was up 31.7 points, or 0.61 per cent, at 5,230.6.

* The September share price index futures contract was 25 points higher at 5,231, with 21,475 contracts traded.

* National turnover was 2.07 billion securities worth $5.2 billion.