Australian shares edged higher on Monday as energy and metal-centric stocks rallied, and the country's largest city eased more COVID-19 restrictions just a week after lifting its lockdown.

The S&P/ASX 200 index rose 0.29% to 7,383.7 by 0043 GMT, adding to the 0.7% gain clocked on Friday.

Energy stocks rose 1.1%, tracking oil prices' three-year high finish in the previous session on forecasts of a supply deficit in the next few months.

Heavyweight Beach Energy Ltd led gains on the sub-index, advancing 2.4%, followed by natural gas major Santos Ltd, gaining 1.5%.

A faster-than-expected vaccine uptake brought forward further lifting of restrictions by several days as New South Wales topped the 80% double-dose immunisation rate over the weekend, pushing travel stocks higher.

Airline Regional Express Holdings rose 6.4%, while peer Qantas jumped as much as 2.1%.

Major miners rose 0.69% on strong prices of zinc, copper and aluminium as surging power prices threaten to curb supply at a time when exchange stockpiles are at rock bottom.

Lithium miner Vulcan Energy Resources soared 11.3% on signing a five-year lithium supply deal with Belgian materials technology and recycling group Umicore SA.

Export-reliant domestic health stocks, however, which earn in US dollars, skidded as the greenback weakened in the previous session.

Sector heavyweight CSL Ltd fell 0.5%, while medical device maker Polynovo Ltd skidded up to 2.7%.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index fell 0.12% to 12,995.9 after the country's consumer price index beat expectations in the third quarter, jumping to its highest level in more than a decade.