Surprisingly strong jobs figures and positive overseas news has fuelled the share market’s strongest session in almost seven weeks.

A gain of about 1.4 per cent was a welcome change from the market’s sharp falls over the last two weeks, Phillip Capital senior client adviser Michael Heffernan said.

Strong leads from markets in the US and Europe, intensified efforts to resolve the Greek debt saga and the lowest unemployment rate in Australia in a year all buoyed investors.

Stocks that had been beaten down over the last two weeks – especially the big banks – were snapped up by bargain hunters.

“In the last two weeks, the market wilted in the afternoon. We broke the pattern and powered on today,” Mr Heffernan said.

“The gods are smiling.”

The unemployment rate dropped to 6.0 per cent in May as the number of people with jobs rose by 42,000 – much more than expected.

Among the major banks, Commonwealth Bank advanced $1.50 to $81.41, ANZ lifted 72 cents to $31.81, National Australia Bank gained 68 cents to $32.51 and Westpac rose 61 cents to $31.97.

BHP Billiton jumped 57 cents to $28.23 and Rio Tinto put on $1.41 to $57.48, despite ratings agency Fitch downgrading the outlook for both companies.

Energy stocks also rose, with Woodside Petroleum gaining 63 cents to $36.85 and Santos 20 cents stronger at $8.27.

Telstra gained eight cents to $6.04.

Shares in printing group PMP soared 8.5 cents, or 18.3 per cent, to 55 cents after it said it would resume paying dividends to shareholders.

KEY FACTS

* At 1616 AEST on Thursday, the benchmark S&P/ASX200 index was up 78.1 points, or 1.43 per cent, at 5,556.7 points.

* The broader All Ordinaries index was up 76.6 points, or 1.4 per cent, at 5,562.6 points.

* The June share price index futures contract was 84 points higher at 5,559 points, with 28,257 contracts traded.

* National turnover was 1.57 billion securities worth $4.05 billion.