The S&P/ASX 200 index closed 6.3 points higher at 4556, while the broader All Ordinaries added 7.8 points to close at 4626.2.

Stocks on Wall Street retreated as investors played it safe while waiting for a resolution regarding the US debt ceiling issue.

RBS Morgans private client adviser Craig Walker said the local market defied Wall Street’s flat lead largely on the back of positive news from locally listed energy and resource companies, the Australian Associated Press reported.

"The market's reacted positively to a positive report from BHP yesterday, and also [a] production report this morning from Newcrest [Mining], which has buoyed some of the stocks in that space," Walker said.

Australia’s largest gold producer Newcrest Mining closed A34c lower at $40.47, despite announcing it had boosted annual production by 53% to 2.7 million ounces, within its revised guidance, thanks to its takeover last year of Lihir Gold.

AngloGold Ashanti was unchanged at $8.35, Kingsgate Consolidated shed 1c to $9.09 and Medusa Mining added 2c to $7.48.

Spot gold was trading at 0.1% higher at $US1601.79 per ounce at 3.58pm (AEST).

Major miner BHP Billiton added 14c to $43.58, while Rio Tinto lost 21c to $82.34.

Fellow iron ore miner Fortescue Metals Group was down by1c at $6.52.

One of the biggest movers for the day was Sundance Resources, up 2.5c to 52c.

Sundance is subject to a $1.2 billion takeover proposal from its major shareholder Sichuan Hanlong Group, however The Australian Financial Review has revealed the possibility of a rival suitor.

Base metals on the London Metal Exchange continued their downward spiral in afternoon trade in Singapore, as HSBC Holdings’ preliminary survey suggests China’s manufacturing data experienced its biggest fall since March 2009.

The HSBC China Manufacturing Purchasing Index fell to 48.9 points this month, compared to 50.1 last month.

Copper for three-month delivery shed 0.4% to $US9716 per tonne, zinc fell 1% at $2430/t, while nickel dipped 0.82% to $23,850/t in late afternoon trade.

Finally, the Australian dollar was $1.07 at 4.40pm (AEST).