The local share market has gained ground after Democrats and Republicans in Washington reached a deal over the weekend to avoid a cataclysmic debt default.
While the US debt-ceiling deal still needs to pass Congress - which is not assured, with some conservatives and progressives finding fault with it - shares on the Australian Securities Exchange enjoyed their best day in seven weeks on Monday.
The benchmark S&P/ASX200 index finished up 62.6 points, or 0.87 percent, to 7,217.4, while the broader All Ordinaries gained 60.6 points, or 0.83 percent, to 7,395.1.
“The tentative agreement will take away some uncertainty for investors, and that will improve sentiment, helping to drive equities higher,” said eToro market analyst Josh Gilbert.
Nine of the ASX’s 11 sectors finished higher on Monday with the property sector the biggest gainer, climbing nearly two percent.
Mirvac added 2.2 percent to $2.35, and Westfield operator Scentre Group gained 2.6 percent to $2.80.
All of the Big Four banks were up, with CBA climbing 1.4 percent to $99.57, NAB adding 1.3 percent to $26.57 and Westpac and ANZ both closing up 1.2 percent, to $21.16 and $23.74, respectively.
The heavyweight mining sector also put in a respectable performance as the price of iron ore bounced back above $US102 a tonne.
BHP rose 1.4 percent to $43.36, Fortescue Metals climbed 1.2 percent to $19.86, and Rio Tinto gained 1.2 percent to $109.10.
Leo Lithium soared 17.2 percent to 85c, its highest level ever since last June’s float after China’s largest lithium producer agreed to invest $106 million in the Firefinch spin-off.
Ganfeng is buying a 9.9 percent stake at 81c per share, which Leo Lithium managing director Simon Hay called a “transformational opportunity” for Leo and a validation of its Goulamina lithium project in the West African country of Mali.
In industrials, ALS dropped 4.2 percent to $11.75 despite the Brisbane-based testing, inspection and certification company announcing it had beaten guidance by delivering a full-year profit of $291m.
“The company is continuing to demonstrate its resilience in operating through challenging periods of global instability, high inflation and economic uncertainty,” chair Bruce Phillips said.
Select Harvests had gained 8.7 percent to a six-month high of $4.74 after the almond grower said the outlook has brightened after the two most challenging seasons in company history.
La Nina, with its cold and wet weather that caused unusual growing patterns and lower yields, has finally moved on, and key export markets are now very active with China out of lockdown.
But it declared a half-year loss of $96.2m, compared to a $2m profit a year ago, after writing off its entire 2023 almond crop.
In financials, Humm Group had climbed 7.7 percent to 42c afterword that the securities regulator’s temporary stop order against its buy now, pay later product was revoked on Friday evening.
The Australian Securities and Investments Commission issued the order on Thursday regarding paperwork known as a target market determination.
The Australian dollar was buying 65.51 US cents from 65.22 US cents at Thursday’s ASX close.
Cryptocurrencies were also having a solid day, with Bitcoin up 3.0 percent to move above $US28,000 ($A43,000) for the first time in two and a half weeks.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Monday up 62.6 points, or 0.87 percent, at 7,217.4.
* The broader All Ordinaries gained 60.6 points, or 0.83 percent, to 7,395.1.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 65.51 US cents, from 65.22 US cents at Thursday’s ASX close
* 91.90 Japanese yen, from 91.09 Japanese yen
* 60.97 Euro cents, from 60.76 Euro cents
* 52.96 British pence, from 52.82 British pence
* 107.96 NZ cents, from 107.33 NZ cents
