The Australian share market has closed higher, with investors buoyed by plans to breathe new life into Europe’s ailing economy.

At the close on Friday, the benchmark S&P/ASX200 index was 81.9 points, or 1.51 per cent, higher at 5,501.8, while the broader All Ordinaries index was up 77.7 points, or 1.44 per cent, at 5,468.2, according to preliminary figures.

On the ASX 24, the March share price index futures contract was 80 points higher at 5,443, with 23,123 contracts traded.