Australian shares set to rise on strong iron ore prices; NZ up

Australian shares are set to open higher on Monday, likely helped by the country's heavyweight mining stocks on the back of strong iron ore prices.

Dalian iron ore hit a record high on Friday, boosted by robust demand in China and supply concerns fuelled by disappointing forecasts by Brazilian miner Vale SA.

The local share price index futures rose 0.6%, a 47.9-point premium to the underlying S&P/ASX 200 index close. The benchmark ended 0.3% higher on Friday.

New Zealand's benchmark S&P/NZX 50 index rose 0.8% in early trade.