The Australian share market was nearly 1 per cent stronger by Thursday noon as finance stocks climbed and a jobs report boosted investor confidence.

At midday, the benchmark S&P/ASX200 index was up 40.8 points, or 0.9 per cent, at 4578, while the broader All Ordinaries index had risen 39.6 points, or 0.9 per cent, to 4617.9.

On the Sydney Futures Exchange, the September share price index contract increased 40 points at 4,578 points, with 19,121 contracts traded.

There were five stocks up for every two that had fallen.

Among the major sectors, materials and financials were both up 1.2 per cent, while telcos slumped 1.1 per cent.

The local bourse opened about 0.6 per cent firmer, broadly in line with the rally on Wall Street during the offshore session, and it extended its gains during the morning session.

Additionally, market indices reacted positively to the latest jobs data that revealed Australia's unemployment rate was down to 5.1 per cent in August, exceeding market expectations.

Making news today, the competition regulator ACCC said it continued to object to the proposed tie-up between National Australia Bank and AXA Asia Pacific.

AXA shares dived shortly after and were recently down 49 cents, or 9 per cent, at $4.95. The company was the worst-performing stock on the S&P/ASX100.

IOOF Holdings, which was to have bought Axa's North wealth platform as part of the proposed deal, fell 13c at $6.52.

The major banks, on the other hand, were on the upswing, led by NAB, which rose 81c or 3.38 per cent at $24.76.

ANZ had risen 21 cents to $23.70, CBA was 60 cents higher at $52.38 and Westpac had advanced 23 cents to $22.93.