Australian shares bounce back, rising 1.3 per cent

The ASX has finished 1.25 per cent higher on Friday. (Steven Saphore/AAP PHOTOS)

The Australian share market has finally bounced back strongly from Monday's sharp sell-off after better-than-expected US jobless figures belied claims the American economy is headed for recession.

The benchmark S&P/ASX200 index on Friday finished up 95.7 points, or 1.25 per cent, to a lucky 7,777.7 while the broader All Ordinaries gained 104.2 points, or 1.32 per cent, to 7,990.7.