The benchmark FTSE 100 index finished up 76.91 points, or 1.2%, at 6,338.10.
Tesco shares rose 1.8% to 169.50p after the supermarket said it was "encouraged" by its progress, with UK like-for-like sales up 0.3%.
The UK's biggest supermarket chain said it had agreed to sell its Harris & Hoole coffee shop chain to Caffe Nero.
In the FTSE 250, shares in DS Smith rose 6.1% after the packaging company's full-year results beat expectations.
For the year to 30 April, adjusted pre-tax profits climbed 12% to Â£332m.
On the currency markets, the pound rose 0.6% against the dollar to $1.48010, and edged higher against the euro to â‚¬1.30260.
(Close): The London market closed higher on Thursday, with Tesco among the winners after it reported a second consecutive quarter of rising sales.