A slew of better than expected local economic news, that came hot on the heels of the best company reporting season in three years, saw local shares move higher over the past week.

The stockmarket shrugged off Monday's falls as fears abated that Russia's push in to Ukraine's Crimean peninsula could escalate into to a military crisis with the potential to disrupt global oil supply and financial markets.

The benchmark S&P/ASX 200 Index lifted 57.5 points, or 1.1 per cent, over the five sessions to 5462.3, while the broader All Ordinaries Index lifted to 5477. On Friday the benchmark index added 0.3 per cent.

In China on Friday it was confirmed that Chaori Solar Energy has defaulted on its debt. It is the first time China's government has allowed a national company to default.

On Monday it will be five years since the local benchmark index dipped to an intraday low of 3120.8, the nadir of the market's dive during the global financial crisis.

"Given a five-year bull run it is impossible to argue stocks look cheap, but the market is not necessarily too high," MLC Investment Management senior investment consultant Brian Parker said.

"With interest rates still ridiculously low there is an overwhelming incentive for investors to poor more money into stocks and chase equity markets higher."

As was widely expected the Reserve Bank of Australia elected to keep the official cash rate at its record low 2.5 per cent on Tuesday.

"The biggest risk to equities is that over the past five years share price gains have outstripped underlying company earnings growth. Stocks can rise on thin are and optimism but they can't stay high on that alone in the long term," Mr Parker said.

The good news for the local market is that recent economic data, notably much stronger than expected retail sales and building approvals reports released over the past week, indicate that the earnings environment is improving, Mr Parker said. "Australian companies have done a particularly good job of controlling costs over the past couple of years and now well placed to deliver profit growth as domestic demand accelerates."

While equity markets around the world are at or approaching fresh highs, bond markets are pricing the prospects for the world economy more pessimistically, Ardea Investment Management portfolio Tamar Hamlyn manager said. "This is a hangover from quantitative easing in the US and low interest rates at home."

"The diversion is interesting. In the lead-up to the GFC bond yields started to fall on fears of a developing crisis well before equities started falling," Mr Hamlyn said "Only time will tell if bond or equity markets are right, but we are cautiously optimistic in out outlook for global financial markets. In Australia the economy needs to re-balance away from mining-led growth, which will be difficult, but all the right building blocks are now in place."

Gains in the local sharemarket over the past week were led by the big four banks, while the biggest miners were lower as iron ore and coal prices fell and amid growing fears of a slow down in Chinese demand growth.

Gold stocks were among the most volatile as the precious metal's value ebbed and flowed with the global worries over the threat of escalating violence in Ukraine.