Australian shares advance

Australian shares advanced 1.2 percent on Monday but finished off their highs as investors focused on the hurdles ahead for Europe after a eurozone summit, and some softer Chinese import and Australian export data. Analysts cautioned even after the eurozone agreement by most European Union leaders to build closer fiscal ties, there were still many unresolved issues on the debt front that could push European bond yields higher again and stock markets lower.
"We are still quite a cautious mob here in Asia," said IG Markets institutional dealer Chris Weston. The big miners led the day's gains, with BHP Billiton rising 1.9 percent to A$36.53 and rival Rio Tinto up 0.6 percent to A$64.13. The benchmark S&P/ASX 200 index gained 49.8 points to 4,252.8, after hitting a high of 4,271.9. Volumes as usual were below normal at around two-thirds of the 90-day average. The index dropped 1.8 percent on Friday to a two-week low. New Zealand's benchmark NZX 50 index gained 0.9 percent to 3,299.
Shares in Aston Resources jumped as much as 5 percent after it agreed to merge with Whitehaven Coal to create a A$5.1 billion coal miner. Aston shares finished up 1.4 percent to A$9.90, just below the merger valuation, while Whitehaven fell 1.4 percent. Origin Energy shares climbed 3 percent after its joint venture partner Sinopec agreed to increase its stake in the Australia Pacific LNG project to 25 percent.
Other energy stocks benefited from Origin's gains, including Santos up 3.2 percent and Woodside Petroleum up 1.5 percent. Qantas shares underperformed the market, falling 0.3 percent, after the airline tried to reassure investors that domestic bookings have recovered back to normal levels after months of industrial disputes and said it was still talking about setting up a premium airline in Southeast Asia.