The Australian share market is up after Australia’s second largest bank, Westpac, announced a big rise in earnings and signs the US economy is strengthening.

Westpac announced an eight per cent increase in cash earnings to $3.77 billion on Monday, resulting in a solid rise in its share price.

The market has reacted positively to Westpac’s results and strong US jobs growth, Australian Stock Report senior equity analyst Benny Sada said.

US nonfarm payrolls surged 288,000 last month, the largest gain since January 2012, the Labor Department said on Friday.

“This has fuelled optimism in the US economy,” Mr Sada said.

“Although US markets weakened a touch on Friday night, we are seeing a refocus on those job figures which is driving our market today.”

Westpac had risen four cents at $34.91, ANZ was down 16 cents at $34.18, the Commonwealth Bank was seven cents higher at $79.21 and National Australia Bank had gained 10 cents to $34.66.

In the resources sector, BHP Billiton was up 37 cents at $37.64, while Rio Tinto had risen 72 cents to $61.70 and Fortescue Metals had lifted two cents to $4.93.

KEY FACTS

* At 1020 AEST on Monday, benchmark S&P/ASX200 index was up 18.6 points at 5,476.7 points.

* The broader All Ordinaries index was up 17.8 points at 5,456.6 points.

* The June share price index futures contract was up 12 points at 5,459 points, with 8,167 contracts traded.

* National turnover was 1.3 million securities worth $6.8 million.