The Australian share market is higher due to better than expected business spending data and positive leads from global markets.

The initial reaction to capital expenditure data for the September quarter was mildly positive, CMC Markets chief market analyst Ric Spooner said.

“The actual expenditure figures were up 3.6 per cent, which is better than the market expected,” Mr Spooner said.

“Also the buildings and structure part (of the data) has done okay, which indicates that areas outside mining are starting to do some of the heavy lifting.

“So both the Aussie dollar and the share market have responded positively to that.”

Among the major banks, Commonwealth Bank was up 64 cents at $77.94, Westpac was 30 cents higher at $33.07, National Australia Bank was up 30 cents to $34.79 and ANZ had added 11 cents to $32.19.

In the resources sector, mining giant BHP Billiton was up 17 cents at $37.42, Rio Tinto had gained 59 cents at $64.89 and Fortescue Metals was four cents higher at $5.69.

Shares in engineering firm Forge Group plunged, losing $3.50, or 83.7 per cent, to 68 cents after it came out of a four week trading halt flagging heavy financial losses and writedowns.

Specialty Fashion Group rose eight cents to 87 cents after it announced the purchase of clothing brand Rivers.

Takeover target Warrnambool Cheese and Butter was 10 cents higher at $9.35 after suitor Murray Goulburn lifted its offer to $9.50.

KEY FACTS

* At 1209 AEDT on Thursday, the benchmark S&P/ASX200 index was up 25.6 points, or 0.48 per cent, at 5,358.5 points.

* The broader All Ordinaries index was up 25.5 points, or 0.48 per cent, at 5,350.4 points.

* The December share price index futures contract was 16 points higher at 5,366 points, with 9,825 contracts traded.

* National turnover was 713 million securities worth $1.44 billion.