The S&P-ASX 200 index hit a fresh six-month high of 4756.1 points before cooling to close at 4745.3 points, up 0.5%, while the All Ordinaries also ended 0.5% higher at 4817.6 points.

The local market was buoyed by the positive reaction on Wall Street to the Federal Reserve’s $US600 billion quantitative easing announcement and positive economic data.

The Dow Jones Industrial Average added 0.24% to end the session at a two-year closing high of 11,215.13 points while the NASDAQ finished 0.27% higher at 2540.27 points and the S&P 500 index gained 0.4% at 1197.96 points.

BHP cooled following an intraday high of $A44.08 to close the session at $43.72, up 2.6%, after its Potash Corp bid was given the thumbs down by the Canadian government.

Canada's Industry Minister Tony Clement said he was not convinced the takeover would be of net benefit to his country "at this time".

"I came to this decision after a careful and rigorous review of the proposed transaction," Clement said.

BHP was disappointed with the decision, but continues to believe the offer is of net benefit to Saskatchewan, New Brunswick and Canada as a whole.

“BHP will continue to cooperate with the minister and will review its options,” the company said in a statement.

BHP now has 30 days to make additional representations to the government in a bid to change its position.

Rio Tinto finished the session 19c lower at $83.20 while Fortescue Metals Group gained 20c to close at $6.69.

In other mining news, Independence Group NL has launched a $164.3 million capital raising to fund its 30% share of estimated costs to bring the Tropicana gold project into production.

Independence shares were last trading at $7.19 prior to entering a trading halt.

On the Final Call watchlist, Atlas Iron was the biggest percentage mover, closing 18c or 7% higher at $2.74 while Riversdale Mining added 64c or 5.7% to $11.85.

Meanwhile, Energy Resources of Australia shares ended 59c, or 4.5%, lower at $12.46 after UBS kept its sell recommendation and $12.35 price target on the stock.

LME three-month copper gained ground today, up $US81 to $8400 per tonne on the back of the Federal Reserve announcement of the QE program over the next eight months.

Spot gold was trading 0.4% higher at $1354.25 an ounce.

Newcrest Mining gained A57c to $40.96, Kingsgate Consolidated finished 10c higher at $10.66 while Perseus Mining added 6c to $1.93.