The Australian share market was 0.6 per cent stronger at noon as bargain hunters returned to the local resources sector, after Wall St bounced.

At 1200 AEST, the benchmark S&P/ASX200 index had pushed further above the psychological 5,000 point barrier, gaining 31.8 points, or 0.60 per cent, to 5030.1 while the broader All Ordinaries added 31.1 points to 5125.1.

The September share price index futures contract rose 34 points to 5,034 on a total volume of 10,784 contracts.

Pattersons Securities senior client adviser Rick Turner said a local relief rally was being led by a stronger US market performance.

"Is it the end? Probably not," Mr Turner said.

"There are still concerns about the slowing US economy and the base metals were all off last night.

"So the miners that produce a single commodity are down but the big diversified miner are fairing better.

"Obviously there's some bargain hunters around.

"There seems to be a $40.00 floor on BHP at the moment and and the banks look cheap on a forward PE (price to earnings) level."

BHP Billiton advanced 74 cents to $40.56 and Rio Tinto firmed $3.72 to $125.67. Both stocks fell more than seven per cent yesterday.