The S&P/ASX 200 index climbed 42.1 points to close at 4267.8 points, while the All Ordinaries gained 42.2 points to 4333.2 points.

Stocks were buoyed by Australian Bureau of Statistics data showing a jump in exports and widening of trade surplus.

According to the ABS figures, the nation delivered a seasonally adjusted trade surplus of $A1.7 billion in December, beating analysts’ forecasts of a $1.2 billion surplus, while exports rose by 2% to $27.7 billion in December.

News out of the US overnight that manufacturing in the world’s biggest economy had grown at its fastest pace since last June also helped lift stocks.

BHP Billiton gained 71c to close at $37.62 after the mining goliath gave the go-ahead to $A856 million in pre-commitment funding for the development of a 100 million tonne per year outer harbour facility at Port Hedland in Western Australia.

Meantime, Rio Tinto added $1.98 to $70.72 after snapping up BHP’s 37% interest in Richards Bays Minerals, marking BHP’s exit from the titanium minerals industry.

Rio has also accepted a Chinese takeover offer for its 11.1% stake in London’s Kalahari Minerals, ruling out a competing bid for Kalahari by the miner.

The biggest mover on the Final Call watchlist was Lynas Corporation, which skyrocketed to a high today of $1.625 before closing 25.5c higher at $1.59.

The rare earths miner has been given the all clear from Malaysia’s Atomic Energy Licensing Board, receiving a two-year temporary operating licence for its rare earths plant and agreeing to pay a $46 million financial guarantee to the government.

Commodity prices on the London Metal Exchange lost ground in afternoon trading in Asia. Copper for three-month delivery had slipped almost 0.5% to $US8400 per tonne, zinc was down just over 1% at $2108.5/t while nickel was flat at $20,975/t.

Gold climbed to an eight week high in today’s trade on the back of a weaker US dollar after the release of improved manufacturing data.

Spot gold gained as much as 0.5% to $1751.97 an ounce and was trading at $1747.2/oz at 4:30pm AEDT.

Finally, news of the trade surplus helped lift the Australian dollar by around 0.2% to $US1.0723 in afternoon trade.