The Australian sharemarket surged on Monday, buoyed by China’s latest pledge to enhance domestic consumption and a positive tone from Wall Street following the United States government’s successful avoidance of a shutdown.
The S&P/ASX 200 closed 64.40 points higher, or 0.83%, at 7,854.10, as seven of eleven sectors finished in positive territory.
Materials and energy stocks led the gains, driven by rising commodity prices and upbeat investor sentiment.
Mining stocks dominated the session, with Rio Tinto, BHP and Fortescue all recording gains of 1.8%, 2.4% and 4.2%, respectively.
Mineral Resources soared 11% after UBS upgraded its rating to “Buy”.
Meanwhile, gold prices edged closer to record levels, supported by ongoing concerns over U.S. President Donald Trump’s trade policies.
The financial sector also saw broad-based gains. Commonwealth Bank added 1.6%, ANZ rose 1.4%, and Westpac gained 1%.
However, National Australia Bank dipped 0.2% after revealing that its Chief Financial Officer, Nathan Goonan, will depart to join Westpac.
Among individual movers, Spartan Resources surged 9.1% after confirming its merger with Ramelius Resources, further fueling investor optimism in the mining sector.
Woodside Energy Group also climbed, benefiting from higher oil prices and news of a long-term liquefied natural gas (LNG) supply agreement with China.
On the bond markets, 10-year and 2-year yields were 0.5% and 0.7% lower at 4.417% and 3.759%, respectively.
