SYDNEY, AUSTRALIA, March 13, 2009 (AFP) - Australian share prices gained 3.3 percent in Friday trade as investors took heart from better-than-expected US retail sales data.

The benchmark S&P/ASX 200 was 105.6 points higher at 3,341.1 at noon, while the broader All Ordinaries put on 98.3 points to 3,288.7.

Turnover was 741 million shares worth 1.7 billion dollars (1.1 billion US), with 521 stocks up, against 185 down and 236 flat.

The US Commerce Department reported a seasonally adjusted 0.1 percent dip in February retail sales from the previous month overnight, compared with the 0.5 percent drop most analysts expected.

The small decline followed a sharp revision of the January number to a 1.8 percent increase, up from an initial estimate of 1.0 percent, and spurred Wall Street into a third bullish session.

'(The data does) not necessarily mean the (US) economy's going gangbusters, but certainly the downward slide appears to be levelling out, ' said Macquarie Private Wealth adviser Helen Spencer.

'Signs of a levelling out or even a bottoming out are what the market's keenly looking for, and certainly some of those statistics are starting to be a little bit more positive than expected.'

Financial and resources stocks drove most of the gains, with the four major banks higher and miners rallying strongly.

Commonwealth put on 1.36 to 30.03, National Australia Bank lifted 87 cents to 17.60, Westpac found 57 cents to 17.17 and ANZ Banking Group was up 48 cents to 13.37.

BHP Billiton gained 1.06 to 31.41 and Rio Tinto advanced 1.33 to 51.50.