The Aussie market is trading half a percent higher heading into the afternoon session.

Whilst the index is in positive territory it has come off its highs and is not trading as strongly as we might have expected given the strong leads provided overnight.

Most sectors are stronger, with financials, industrials and materials the best in show, whilst the telcos and healthcare are the weakest performers.

In company news, Harvey Norman today reported a 9% rise in full-year net profit, up from $231.4 million to $252.3 million.

Despite the solid result, the company remained cautious regained its outlook for the current fiscal year. The stock is trading 1% higher on the back of the numbers.

Around the region, Asian markets are sharply higher; the Hang Seng (+2.3%), Shanghai Composite (+1.3%) and the Nikkei (+1.5%) are all outperforming the local market.