The Australian stock market has made a positive start to trade after a strong lead from Wall Street.

After opening on Friday, the local market was up 0.4 per cent at 5,111 points.

This followed an 0.81 per cent rise on the Dow Jones Industrial Average on the back of better-than-expected figures that put US manufacturing at a two-year high.

IG market analyst Evan Lucas said the surge was unsurprising given the good data out of the US.

"We are basically following suit," he said.

"We've just punched over 5,100 points, which is another psychological barrier ... it's quite a staggering return."

He said the market was also in the processing of positioning itself ahead of earnings season reports from Telstra and Rio Tinto next week.

The big four banks were up after talk of a deposit levy saw them drag the otherwise strong market down on Thursday.

Mr Lucas said the falls were an overreaction to the policy speculation and bank stocks were likely to jump back during the day.

NAB was up 28 cents at $31.01, ANZ 30 cents higher at $29.69, while the Commonwealth Bank added 62 cents at $73.74.

Westpac was up 41 cents to $31.28.

In the resources sector, Rio Tinto gained 96 cents at $58.90, while BHP was up 50.5 cents at $35.67.

Telstra was also up two cents at $5.04.

Resmed, a company that makes equipment to treat sleep disorders, has also hit an all-time high, up 15 cents at $5.47 after reporting strong results.


* At 1032 AEST, the benchmark S&P/ASX200 index was up 45.4 points, or 0.9 per cent, at 5,106.9 points.

* The broader All Ordinaries index was up 43.9 points, or 0.87 per cent, at 5091 points.

* On the ASX 24, the September share price index futures contract was 56 points higher at ,5063 points, with 8,462 contracts traded.

* National turnover was 227.9 million securities worth $519.9 million.