Australian shares have rebounded from their worst week in seven months as the threat of war in the Middle East seemed to fade and traders snapped up bargains.
The benchmark S&P/ASX200 index on Monday gained 81.9 points, or 1.08 per cent, to close at a six-day high of 7,649.2.
The broader All Ordinaries rose 84.6 points, or 1.08 per cent, to 7,902.0.
The ASX200 dropped 2.84 per cent to a two-month low last week, in part due to fears of all-out war in the Middle East following tit-for-tat attacks between Iran and Israel.
But the drama wound down over the weekend, with Iran indicating it had no plans to retaliate after Israel launched a limited drone strike against an air base near the city of Isfahan on Friday.
Ten of the ASX's 11 sectors finished higher on Monday, with energy the outlier. It slid 1.5 per cent as Brent crude dipped to roughly a four-week low of $US86 a barrel on the easing geopolitical tensions.
The health care sector was the biggest gainer, rising 2.0 per cent as CSL advanced 2.2 per cent to $275.47.
The heavyweight materials sector rose 1.1 per cent as BHP added 1.8 per cent to $45.42, Fortescue climbed 0.8 per cent to $24.79 and Rio Tinto edging 0.2 per cent higher at $129.78.
South32 was the biggest gainer in the ASX200, rising 5.6 per cent to $3.37 after the diversified miner said it was on track to meet production guidance for all of its metals save manganese, whose production was impacted by Tropical Cyclone Megan.
"During the quarter, we achieved significant milestones aligned with our strategy to transform our portfolio toward commodities critical in the transition to a low-carbon future," said chief executive Graham Kerr.
Goldminers were lower as the safe-haven asset dipped $US35 to $US2356 an ounce, with Northern Star down 1.4 per cent, Evolution Mining dropping 1.5 per cent and Bellevue Gold plunging 6.9 per cent.
The Big Four banks were mostly higher, with NAB up 1.0 per cent to $33.40 and Westpac and CBA both rising 0.9 per cent, to $25.73 and $112.88, respectively. ANZ dipped 0.1 per cent to $28.23.
In the energy sector, Woodside dropped 2.6 per cent and Santos fell 1.2 per cent, while Boss Energy added 3.7 per cent to $4.76 after producing the first drum of uranium at its Honeymoon uranium mine in South Australia.
Back in the materials sector, Base Resources soared 123.8 per cent to 23.5c after the Perth-based, Africa-focused mineral sands producer agreed to be acquired by US-based uranium producer Energy Fuels in a cash and scrip transaction valuing Base at 30.2c a share, or $375 million.
In the consumer discretionary sector, Star Entertainment dipped another 1.2 per cent to 41.5c as a hearing into its suitability to hold a NSW casino licence continued, while Lovisa rose 5.0 per cent to $30.84 after a broker upgrade for the fast-fashion retailer.
The Australian dollar was buying 64.33 US cents, from 63.96 US cents at Friday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Monday up 81.9 points, or 1.08 per cent, at 7,649.2.
* The broader All Ordinaries rose 84.6 points, or 1.08 per cent, to 7,902.09
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 64.33 US cents, from 63.96 US cents at Friday's ASX close
* 99.55 Japanese yen, from 98.74 Japanese yen
* 60.33 Euro cents, from 60.18 Euro cents
* 51.97 British pence, from 51.53 pence
* 108.87 NZ cents, from 108.82 NZ cents.
