Australia shares gain as Sydney Airport soars on $16.7b buyout bid

Australian shares rose on Monday, boosted by industrial stocks, as Sydney Airport Holdings surged over 38% after receiving a takeover offer of $16.7 billion.

The S&P/ASX 200 index rose 0.38% to 7,336.4 points by 0038 GMT.

Elsewhere, Japan's Nikkei was down 0.43%, while S&P 500 E-minis futures fell 0.13%.

The industrial subindex rose as much as 6.3% to its highest level in more than 16 months, after the country's only listed airport operator received a bumper buyout offer from a consortium of infrastructure investors.

Shares of Sydney Airport hit a near one-and-a-half-year high of A$8.04 ($6.04).

Among sectors, gold stocks advanced about 2%, as prices of the precious metal strengthened against a weaker dollar.

A weaker dollar makes gold cheaper for holders of other currencies.

Top gold explorer Newcrest Mining rose 0.8% and smaller peer Chalice Mining jumped as much as 10%.

Energy stocks gained 0.8%, with Woodside Petroleum Ltd and Santos Ltd rising 1% and 0.7%, respectively.

Logistics provider Qube Holdings advanced as much as 1.6% after selling its interest in a freight infrastructure project for A$1.67 billion ($1.26 billion).

Investors will be watching out for the Reserve Bank of Australia meeting on Tuesday, when it will discuss benchmark rates and monetary stimulus policy, as the country faces uncertainties from virus-led lockdowns that could impede an economic recovery.

"We think the RBA will retain its messaging that hikes in 2024 are most likely... we expect a more flexible shift in the QE purchase program," analysts at Morgan Stanley said in a note.

In New Zealand, the benchmark S&P/NZX 50 index rose 0.7%, helped by gains in industrial and consumer stocks.