Despite a flat showing on Wall Street overnight, the market opened with a bang and continued its good run throughout the trading day, with a strong performance from the miners leading the way.

Positive sentiment was underpinned by assurances from Fed chairman Ben Bernanke backing the $US85 billion a month bond purchase program, saying the economy would continue to need the stimulus measure.

The market took note but didn’t factor into trading a slight rise in Australia’s unemployment rate from 5.6% in May to 5.7% in June, making it the highest number of people out of work since 2009.

While the number of people employed increased by 10,300 to 11,668,500 in June, it was due to a jump in part-time employment, which was offset, however, by decreased full-time employment, down 4400 to 8,144,500.

At the closing bell, the S&P/ASX 200 index climbed 1.3% to 4965.7 points.

The Australian dollar gained ground on the greenback in early trade and held steady after the jobs data was released, last trading at US92.83c.

The materials sector was by far the best performer, gaining 3.8% as miners posted some substantial gains.

Gold miners led the charge, with Newcrest Mining gaining 11.6% to $A11.10 while Perseus Mining firmed 23.7% to 60c and Kingsgate Consolidated jumped 17.2% to $1.50.

Evolution Mining was 20% higher at 66c, Alacer Gold Corporation moved up 10.6% to $2.61, St Barbara added 18.9% to 56.5c and Silver Lake Resources tacked on 17% to 75.5c.

The majors were up more than 3%, with BHP Billiton closing up 3.2% to $32.84 and Rio Tinto gaining 3.7% to $54.32.

Fortescue Metals Group posted its third consecutive gain, up 2.7% to $3.45, while Atlas Iron closed 3.8% higher at 82c.

Elsewhere, Lynas Corporation was a standout despite not releasing any news.

The rare earths miner surpassed 45c for the first time in more than a month, adding 16.2% to 46.5c.