A rise in US job numbers has helped the world's largest economy
The global economy received a boost after better-than-expected US jobs figures pushed the Dow Jones stock market index to its highest level since before the 2008 financial crisis.
The fall in American unemployment also helped European shares, with Britain's FTSE 100 closing up 1.8% - a six-month high.
Germany's DAX finished 1.7% higher, while France's CAC-40 gained 1.5%.
The US Labour Department said companies hired 243,000 employees in January, the strongest jobs growth in nine months. Analysts had expected the figure would be 140,000.
The news pushed the unemployment rate in America down to a three-year low of 8.3%.
World markets were given a further lift after other figures showed US factory orders rising for a second straight month during December.
The surge in hiring in the world's largest economy last month drove the technology-based Nasdaq to an 11-year high as optimism grew that the labour market was on a steady path to recovery.
And the Dow jumped 156.82 points to 12,862.23, its highest mark since May 19, 2008, about four months before the Lehman Brothers investment bank collapsed.
"It is really hard to find something not to like in the jobs report," said Andrew Goldberg, market strategist at JP Morgan Funds in New York.Signs of an improving economy and an absence of bad news from Europe have helped Wall Street stocks rally since last year.
"There is genuine strength in this report with broad-based jobs creation."
While the news was positive, it will take more months of substantial job gains to maintain momentum and Mr Goldberg warned: "There is a long way to go for this economy."
He added: "There is no doubt that no matter how good this report is, this is still a lukewarm jobs recovery."
Analysts have cautioned that the US market is still susceptible to risks such as a worsening debt crisis in Europe or political uncertainty in the Middle East that could push up the oil price.
Worries over Europe's debt troubles still have the potential to send markets reeling in the months ahead, Lawrence Creatura, an equity portfolio manager at Federated Investors said.
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