SYDNEY/WELLINGTON: Australian shares ticked higher on Monday, with banks leading the gains on hopes of a vaccine-fuelled economic recovery as shipments of Covid-19 shot began in the United States. The S&P/ASX 200 index rose 0.3% to end the session at 6,660.20. However, it pared early gains of up to 0.8% as miners and healthcare firms weighed on the index.

The financials sector was the biggest boost to the benchmark, adding 1% in its best session since Dec. 1.

The "Big Four" banks gained between 0.4% and 1.9%.

Tech stocks posted their biggest intraday gain session since Aug. 25, led by Afterpay which jumped 8.8% to close at an all-time high.

The increased buying interest in the buy-now-pay-later bellwether came after news that it was included in the ASX 20 and ASX 50 indexes.

The gains were, however, limited by losses in miners, energy stocks, and healthcare firms.

The healthcare sector has been under pressure after Australia halted its Covid-19 vaccine programme last week.

Biotech firm CSL Ltd, which was developing a vaccine with the University of Queensland, fell 1.7% to its lowest level since Nov. 2, marking its third session of losses.

In New Zealand, the benchmark S&P/NZX 50 index declined 0.7% to finish the session at 12,835.12.

"The index is following US futures higher with banks standing out as economy improves and life returns to normal," said Henry Jennings, senior analyst at Marcustoday Financial Newsletter.