The local share market has rallied amid a lift in risk appetite following better-than-expected jobs figures in the United States and the resolution of its debt drama.
The benchmark S&P/ASX index had its best day in nearly eight weeks on Monday, finishing up 71.2 points, or 1.0 per cent, to a one-week high of 7,216.3.
The broader All Ordinaries was up 70 points, or 0.95 per cent, to 7,401.2.
The lift came after a non-farm payrolls report on Friday evening showed the US economy was remaining resilient in the face of higher interest rates, creating far more jobs in May than expected.
The jobs report didn't really change expectations on whether the Fed will hike rates next week, which is seen as unlikely, but a hike by July is viewed as a near-certainty.
Closer to home, traders were positioning themselves ahead of the Reserve Bank of Australia's meeting on Tuesday.
Consensus expectations are that the central bank will leave the cash rate on hold at 3.85 per cent, but experts said a hike couldn't be ruled out, particularly after last week's first-quarter consumer price data showed Australian inflation still running hotter than forecast.
Nine of the ASX's 11 official sectors finished higher on Monday, with the consumer discretionary sector the best-performing, climbing 1.7 per cent on the lift in sentiment.
Wesfarmers gained 2.1 per cent to $48.78, JB Hi-Fi rose 1.9 per cent to $43.18 and Rebel owner Super Retail Group added 2.3 per cent to $11.52.
The heavyweight mining sector gained 1.5 per cent as iron ore prices rose on word of new stimulus measures in China.
Fortescue climbed 3.6 per cent to $20.40, BHP added 1.7 per cent to $44 and Rio Tinto gained 1.3 per cent to $111.59.
Goldminers were mostly lower however, as the price of the safe haven metal slid to a one-week low of $US1,945 an ounce.
Newcrest dropped 1.4 per cent and Northern Star dipped 0.4 per cent, although Evolution climbed 3.1 per cent as Australia's third-biggest goldminer approved a $250m expansion of its Mungari operations near Kalgoorlie, WA.
All the Big Four banks finished higher, with ANZ climbing 1.5 per cent to $23.12, Westpac adding 1.1 per cent to $20.77, NAB advancing 1.0 per cent to $26.05 and CBA closing up 0.6 per cent at $97.50.
The energy sector rose 0.7 per cent as a weekend OPEC+ meeting concluded with Saudi Arabia announcing it would cut production by one million barrels a day in July. Brent crude climbed to around $US77.50 a barrel, a one-week high.
Woodside added 0.8 per cent and Santos closed up 1.1 per cent, while Beach Energy dropped 0.7 per cent.
Looking forward, the RBA's announcement on rates will be handed down at 2.30pm AEST on Tuesday.
Out of 39 experts polled last week by Finder, a slim majority - 22, or 56 per cent - thought the central bank would leave rates on hold at 3.85 per cent, while 44 per cent were predicting an increase.
On Friday, the futures market was pricing in a 37 per cent chance of a rate hike to 4.10 per cent, and a 63 per cent chance of no change.
EToro market analyst Josh Gilbert said a surprise hike would put the equity market under pressure it clings on to its gains so far in 2023.
"Even if another pause from the RBA is on the cards this week, investors should be wary of further hawkish comments from governor Philip Lowe," he added.
The Australian dollar was buying 66.06 US cents, from 66.10 US cents at Friday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Monday up 71.2 points, or 1.0 per cent, at 7,216.3.
* The broader All Ordinaries rose 70 points, or 0.95 per cent, to 7,401.2.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 66.06 US cents, from 66.10 US cents at Friday's ASX close
* 92.58 Japanese yen, from 91.85 Japanese yen
* 61.75 Euro cents, from 61.41 Euro cents
* 53.15 British pence, from 52.75 British pence
* 108.95 NZ cents, from 108.50 NZ cents
