Australian stocks gained 31 per cent over 2009, but were still well short of its November 2007 peak.

In the New Year's Eve trading session, the benchmark S&P/ASX 200 index closed at 4,870.6, up 37.28 points. It was the highest level recorded in the past fifteen months.

The S&P/ASX 200 index surged by 56 per cent its March low of 3120.8, while the All Ordinaries index climbed over 35 points to close at 4882.7.

Speaking on the issue, Graham Harman from Citigroup said, “Really it has been a case of the tide has come in and all the boats have risen.”

New Zealand's benchmark NZX 50 index gained 18 per cent to close at 3,230.14 on the concluding day of the year.

Analysts have projected a 19 per cent growth for Australian shares in 2010.