Aust shares open higher

The Australian share market is slightly higher following gains on overseas markets as optimism grows that the euro zone and Greece will strike a debt deal.

Global markets moved higher overnight, especially in Europe where Germany's DAX 30 jumped two per cent after Greece proposed a reform deal that was closer to that put forward by its creditors.

The local market was around half a per cent higher in early trade, despite falls in iron ore and oil weighing on resources stocks.

IG market strategist Stan Shamu said the continuing slide in Chinese stocks was also weighing on the market, but investors were looking to take advantage of recent weakness, particularly in high yielding stocks.

"I think we're doing ok, all things considered," he said.

"The yield plays are looking very good, I think after the financial year ended people have started looking at buying the underperformers so you've got a bit of life coming into the big banks and Telstra."

In the resources sector, BHP Billiton lost eight cents to $26.57, while Rio Tinto slipped 12 cents to $52.89 while Fortescue Metals lifted one cent to $1.84.

The big four banks were higher, with the Commonwealth Bank up 56 cents to $86.58, while Westpac picked up 20 cents to $32.58, National Australia Bank climbed 22 cents to $33.69 and ANZ gained 26 cents to $32.76.

Meanwhile, shares in Bonds underwear owner Pacific Brands jumped nine cents, or 27 per cent, to 41.5 cents after it lifted its full year earnings guidance.


* On Thursday at 1030 AEST, the benchmark S&P/ASX200 index was up 40.6 points, or 0.74 per cent, at 5,556.3 points.

* The broader All Ordinaries index was up 39.1 points, or 0.71 per cent, at 5,545.1 points.

* The September share price index futures contract was up 27 points at 5,505 points, with 12,336 contracts traded.

* National turnover was 314 million securities worth $666 million.

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