Australian stocks rip higher

Surfer Grant Twiggy Baker at Jaws, off the coast of the Maui Island in Hawaii last month. Brian Bielmann/AFP/Getty Images

Australian stocks took off, following global markets and boosted by a rally in iron ore prices.

The local market broke through the 5500 point mark on the ASX200 and kept going.

At the close, the index was at 5,543.60, up 65.50 points or 1.20%.

Investors were buoyed by a strong showing on Wall Street where the S&P500 closed 1% higher.

Among the banks, the ANZ was up 2.5% to $29.53 and Westpac 2% to $32.13.

A 4.8% rise in iron ore prices boosted the miners. Rio Tinto was up 3.1% to $62.73 and pure play iron ore miner Fortescue Metals 1.6% to $6.69.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.