SYDNEY: Australian shares rose 1.2 percent on Monday, buoyed by stronger-than-expected US jobs data that reinforced views the US economy is recovering steadily and will help spur demand for metals.
Miners led with Rio Tinto climbing 2.1 percent to A$72.03 and BHP Billiton up 1.6 percent to A$38.18.
The benchmark S&P/ASX 200 index was 1.2 percent or 50.73 points at 4,301.90 at 0043 GMT, more than reversing last week's 0.9 percent fall, the first weekly fall this year.
"Solid US employment figures have set the tone," Ric Spooner, Chief Market Analyst at CMC Markets said. "Equity valuations are being adjusted to reflect a situation where the US economy may achieve moderate growth levels unless there is a European crisis leading to credit markets freezing."
Some retailers bucked the trend, falling as retail sales slipped unexpectedly in December as consumers spent less on food and eating out.
Top supermarket Woolworths eased 0.25 percent and electronics retailer JB HiFi fell 0.3 percent. Myer was flat.
The New Zealand market is closed for a holiday.
STOCKS ON THE MOVE
Downer EDI rose 8.5 percent. The contractor said it has been awarded a A$570 million ($614 million), six-year magnetite mining contract with Karara Mining Limited for the provision of services at the Karara Iron Ore Project in Western Australia.
Macquarie Group rose 2.9 percent to A$25.71. The stock got a boost as investors felt a strengthening US economy would lift deals and trade volume. Macquarie updates the market on trading on its quarterly performance report on Tuesday.
Top banks rose with largest lender national Australia Bank leading the pack with a 1.8 percent rise. Strong US economic data raised hopes of a global recovery, which would in turn reduce the cost of funds for Australian banks.
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