The Australian share market has finished higher for the session and the week despite further evidence of the global economic hit from the coronavirus pandemic.

Key points: China's economy shrank by 6.8 per cent in the first quarter, compared to a year ago

China's economy shrank by 6.8 per cent in the first quarter, compared to a year ago The Australian share market rose, alongside markets across Asia

The Australian share market rose, alongside markets across Asia In the US, 5.2 million people filed for unemployment benefits last week

China's economy has gone backwards for the first time since official records began in 1992, shrinking by 6.8 per cent from January to March compared to the same quarter last year.

The figures from China's National Statistics Bureau show that compared to the previous quarter, China's gross domestic product (GDP) declined by 9.8 per cent.

The historic slump comes after the country virtually shut down its economy to contain the spread of the virus.

The fall in GDP was more than expected by economists surveyed by Reuters.

The Australian dollar was little changed by the data and was buying around 63.4 US cents by 4:30pm (AEST).

The local share market rose, with the ASX 200 closing up by 1.3 per cent at 5,487 points, off its highs of the session.

The All Ordinaries index gained 1.4 per cent or 77 points to 5,544.

A rise in US stock market futures boosted stocks in Asian trade, including in Tokyo (+3.1pc), Seoul (+3.4pc) and Hong Kong (+2.2pc).

Decade of US job creation wiped out in a month

A decade of job creation in the United States has been wiped out in just a month because of the coronavirus pandemic.

About 5.2 million Americans filed for unemployment benefits last week, according to the US Labor Department, bringing the total in the month since the virus outbreak hit the United States economy to 22 million, nearly 14 per cent of the workforce.

That compares with approximately 21.5 million jobs added during the expansion that began in mid-2009 after the global financial crisis.

Last week's claims for unemployment benefit dropped from the previous week, which came in at more than 6.6 million.

Not everyone who filed for benefits would be counted as unemployed because of the more than $US2 trillion rescue package which included employment aid for small business.

Other data showed manufacturing in the mid-Atlantic region plunged to levels last seen in 1980, and homebuilding slumped by the most in 36 years in March.

Global economy in 'very deep recession'

CBA's head of international economics, Joseph Capurso, said a growing amount of economic data confirmed the global economy was in a very deep recession.

"And the recession is just beginning in our view. The longer the lockdown, the further away the recovery."

"No monetary or fiscal policy action has the power to revive the economy when the economy is in government-enforced shutdown," he said in an economic note.

The Trump administration has issued guidelines to state governors for a staged easing of social-distancing rules within four weeks.

The new guidelines are aimed at clearing the way for an easing of restrictions in areas with low transmission of the coronavirus, while keeping them in place for harder-hit locations.

New York has extended its shutdown of non-essential businesses until the middle of next month.

Stocks on Wall Street were volatile as concern over the economic impact of the country's shutdown tempered a rally in technology shares.

The Dow Jones index increased 0.14 per cent, or 33 points, to close at 23,538 after a late rally.

The S&P 500 put on 0.58 per cent, or 16 points, to 2,800.

It surged in futures trade on Mr Trump's plan to reopen the economy.

United Airlines says demand for travel 'essentially zero'

Major US bank Morgan Stanley saw quarterly profit plunge as its advisory and wealth-management businesses took a hit from the economic fallout of the pandemic.

United Airlines told the market demand for travel was "essentially zero" and showed no signs of improving in the near future.

Stocks like Amazon and Netflix jumped to record highs, with people staying home and shopping for essentials and watching online streaming services.

That saw the Nasdaq put on 1.7 per cent, or 139 points, to 8,532.

European stocks closed mainly higher as the coronavirus death tolls in Spain and Italy eased and some countries looked at easing restrictions.

But the UK extended its lockdown by at least three weeks.

The FTSE 100 index gained 0.5 per cent, 31 points, to 5,628.