The Australian share market has closed more than one per cent higher, with investors buoyed by indications the US Federal Reserve was sticking to its low interest rate policy.

At the close on Thursday, the benchmark S&P/ASX200 index was 55.4 points, or 1.06 per cent, higher at 5,296.7, while the broader All Ordinaries index was up 51.7 points, or 0.99 per cent, at 5,293.3, according to preliminary figures.

On the ASX 24, the December share price index futures contract was 62 points higher at 5,285, with 25,283 contracts traded.