* FTSEurofirst 300 closes 1.3 pct higher, up for 4th week
* U.S. jobless data sparks turnaround
* Telecoms among major gainers
By Brian Gorman
LONDON, Aug 7 (Reuters) - European shares hit their highest close in more than nine months on Friday, reversing earlier losses, after unemployment in the United States rose less than expected in July.
The FTSEurofirst 300 index of top European shares rose 1.3 percent to 950.38 points, its highest close since Nov. 5. Over the week, the index rose 2.3 percent, its fourth week of gains.
Telecoms, among the best performers in the morning due to their defensive qualities, extended their gains by the close.
France Telecom rose 3.6 percent after JP Morgan upped its rating on the shares to "overweight" from "neutral".
Vodafone, Telefonica and Deutsche Telekom rose between 2.6 and 3.8percent.
"The U.S. jobless numbers were a very pleasant shock and really turned it (the market) round," said David Buik, senior partner, at BGC Partners in London. "It's a step in the right direction."
But Buik added that markets may be in for a correction next week, if the jobless data boosts the dollar, hurting oil prices.
U.S. employers cut 247,000 jobs in July, far less than expected and the least in any month since last August, according to a government report on Friday that provided the clearest evidence yet that the economy may be turning around.
With fewer workers being laid off, the unemployment rate eased to 9.4 percent in July from 9.5 percent in June, the Labor Department said, the first time the jobless rate had fallen since April 2008.
The government revised job losses for May and June to show 43,000 fewer jobs lost than previously reported.
The European benchmark index is up more than 47 percent from its lifetime low of March 9, as investors have become more confident on the prospects of recovery.
Banks, which weighed heavily on the index in the morning, closed mostly higher.
BNP Paribas, Banco Santander, Societe Generale and Deutsche Bank rose between 2.1 and 3.3 percent.
Royal Bank of Scotland fell 12.1 percent after reporting a first-half loss.
"It was a pity about RBS," said Buik. "I don't think there was anything wrong with the numbers, but expectations were far too high."
Crude prices were 0.4 percent lower at $71.67 a barrel late in the afternoon, but most energy companies were higher. Investors weighed the positive effect of the U.S. jobless data, in terms of demand implications, against the stronger dollar, which usually reduces oil prices.
BP, Royal Dutch Shell, Repsol and StatoilHydro rose between 1.2 and 2.1 percent.
PUMA FALLS
Puma, the world's third-largest sports goods maker, fell 4.6 percent after posting a smaller-than-expected fall in second-quarter earnings but adding that it expects a challenging second half due to the recession.
Carmaker Peugeot fell 5.4 percent after S&P cut its debt rating to junk.
Economic data in Europe, like the United States, was upbeat. German exports surged at their fastest pace in almost three years in June, showing the economy's industrial engine room is emerging from its deepest recession since World War Two.
Across Europe, Britain's FTSE 100 closed 0.9 percent higher; Germany's DAX and France's CAC 40 were up 1.7 and 1.3 percent respectively.
Wall Street was higher as European bourses were closing. The Dow Jones, S&P 500 and Nasdaq Composite were up between 1.6 and 1.7 percent.
(Editing by David Cowell)