Australian shares started the week with fireworks, after weak US employment data sparked hopes the Federal Reserve will delay a long-expected rate rise, bolstering sentiment for equities around the world.

After a rocky week that saw the S&P/ASX200 shed 2.5 per cent, the market leapt up within half an hour of opening and continued to build on its early gains throughout the session.

The All Ordinaries finished the day up 1.9 per cent, or 95 points, at 5184.1, while the S&P/ASX 200 finished at 5130.5, up 98 points, or 1.95 per cent, but the gains were on low trading volumes due to the Labour Day public holiday in several states.