Mining stocks have pushed the sharemarket higher, after heavy falls in iron ore prices came to an end.
Encouraging news on the local jobs market, with jobs growing by more than 47,000 in February, well above the 10,000 increase economists had expected, also boosted shares.
The unemployment rate remained steady at 6.0 per cent, mainly due to an increase in the number of people looking for work.
CMC Markets analyst Michael McCarthy said materials stocks had led the charge.
“The market’s been led higher by a resurgence in interest in mining stocks led by iron ore and gold miners,” Mr McCarthy said.
“Markets appear to be settling a little from their concerns about the growth prospects for the world raised by that weaker than expected export number from China over the weekend.”
Buying was fairly strong ahead of the release of Chinese industrial numbers late on Thursday, he said.
“It will either confirm or deny that weaker picture painted by that poor export read,” Mr McCarthy said.
Mining stocks were the strongest performers as the iron ore price stabilised and the gold price rose.
Mining giant BHP Billiton added 41 cents to $36.40 and Rio Tinto gained $1.68 to $63.07.
Fortescue gained 15 cents, or three per cent, to $5.12 and Atlas Iron was 5.5 cents higher at 97.5 cents.
The banks also rose, with Westpac up 31 cents at $34.25, Commonwealth Bank adding 21 cents to $75.96, ANZ gained five cents to $32.23 and National Australia Bank was 21 cents higher at $34.76.
Telstra was flat at $5.08.
KEY FACTS
* At the close on Thursday, the benchmark S&P/ASX200 index was up 28.4 points, or 0.53 per cent, at 5,412.6 points.
* The broader All Ordinaries index was up 28.6 points, or 0.53 per cent, at 5,429.1.
* The March share price index futures contract was 40 points higher at 5,413, with 31,036 contracts traded.
* National turnover was 1.6 billion securities worth $4.2 billion.