The Australian share market rose sharply this morning boosted by strong gains in financial stocks following the US Federal Reserve’s decision overnight to keep interest rates on hold.

By midday, the S&P/ASX200 index was up 78 points, while the All Ordinaries gained 72.

Wall Street reacted positively to the Fed’s interest rate decision on Wednesday, although mixed signals on the sluggish economy restricted broader market gains.

At the close, the Dow Jones Industrial Average was up four points, while the tech-heavy Nasdaq added 32.

In Asian trading today, Japan’s Nikkei was up 61 points at noon, while Hong Kong’s Hang Seng gained 107.

Meanwhile in ASX news today diversified rural group Futuris Corporation rebounded from yesterday’s profit warning this morning following news that CEO Les Wozniczka is to resign.

Futuris, which yesterday cut its full year earnings guidance by up to 20 per cent, said today that the agribusiness needed a fresh set of eyes to guide the company forward. The company added that it would move quickly to find a new CEO. Shares in the group were up by over 28 per cent at midday.

In other news, takeover target St George Bank said today that it remains on track to deliver earnings per share growth of between eight and ten per cent for the current financial year.

In a presentation, St George chief executive Paul Fegan said the group was also on track to meet its other targets concerning cost to income, and its credit quality remained strong. The bank is currently the target of a $15 billion takeover bid from Westpac.

Finally, reports in The Australian newspaper today suggest that the government is planning to tighten foreign investment rules in a move that would curb China’s pursuit of local mining companies.

In an unsourced report, the paper claims that the government is looking to cap foreign sovereign ownership of Australian companies at 49.9 per cent. This comes as the Foreign Investment Review Board has moved to delay an investment application by China’s state-owned Sinosteel, which has been circling Perth-based iron ore miner Murchison Metals.

In individual share price movements on the ASX this morning mining stocks mostly made gains in line with the broader market. BHP Billiton was up 12 cents at midday, Fortescue Metals added 24 cents, Rio Tinto fell 80 cents, while Woodside Petroleum added ten.

Banking stocks led the market this morning. ANZ was up 60 cents at noon, Commonwealth Bank $1.91, National Australia Bank rose 90 cents, and Westpac gained 80.

Other blue chips followed the rest of the market higher. AMP was up 31 cents at noon, News Corp added 60, Telstra put on five cents, while Woolworths gained 31.