The Iseq closed up 144 points at 6,259 after a positive day on the Irish Stock Exchange driven by generally good international sentiment.
Financial stocks were the major performers and finished the day ahead in line with their counterparts around the world as investors re-entered the markets with tentative hopes that the worst of the interbank credit crunch may be nearing. Food stocks also performed well.
European stocks surged 2.3 per cent to their highest close in 10 days, driven by banks which jumped after Citigroup's update underscored hopes the worst was over in the global credit crisis.
The FTSEurofirst 300 index of top European shares ended unofficially 2.3 per cent higher at 1,325.38 points, its highest close since April 7. The index has risen 5 per cent in April, putting it on track for its best month since October 2003.
Britain's top share index rose 1.3 per cent to hit its highest closing level in seven weeks, again led by banks. The FTSE 100 closed up 76.1 points at 6,056.5, underperforming against Germany's DAX and France's CAC-40 because of weakness in heavyweight mining stocks.
The UK bemchmark index gained 2.7 per cent this week and is on track for its best monthly performance in five years.