The S&P/ASX 200 index rose 0.2% to close at 7,504.5. The benchmark had ended flat on Friday.
Shares of Fortescue Metals Group were among the biggest gainers on the benchmark, ending nearly 7% higher, after the mining heavyweight reported its highest-ever annual profit and dividend.
The broader mining sub-index closed over 3% higher, posting its biggest intraday jump in nearly four months, powered by a jump in iron ore prices. BHP Group and Rio Tinto rose 2.8% and 3.7%, respectively.
The local gold sub-index climbed 2.4% after bullion prices hit a near four-week peak, while an uptick in
prices led the energy index higher.
Resource sectors were up on a global commodity bounce after US Federal Reserve chair Jerome Powell said there was ‘no rush’ to tighten monetary policy, and offered no timeline on tapering asset purchases.
On the downside, the banking sub-index shed 0.7%. The “Big Four” banks lost between 0.4% and 1.2%.
“Banks are down due to rising double dip recession fears with
waves as well as global investors selling due to currency risk, ” said Mathan Somasundaram, chief executive officer at DeepData Analytics.
“Investors are starting to worry about market risk in September as rising inflation and delta waves affect weakening global growth. Tapering uncertainty are going to rise through to September US Fed meeting,” he added.
In New Zealand, benchmark S&P/NZX 50 index rose 0.9% to end the session at 13,180.58. Sky Television Network was the top gainer after the media services provider and WarnerMedia extended their partnership.
