Australian shares scaled a near 10-year high on Monday, breaching the psychologically important 6,000 point mark, supported by strong commodities prices and tracking a rally in global equity markets.
The S&P/ASX 200 index rose as much as 0.81 per cent, or 48.42 points, to 6,002.20 at 0010 GMT, its highest level since February 2008. The benchmark fell 0.1 per cent on Monday, reports Reuters.
The rally was supported by strong oil and metal prices and comes ahead of the Reserve Bank of Australia’s policy meeting later in the day, where the central bank is expected to stand pat on policy.
The Australian energy index rose as much as 2.1 per cent, tracking an overnight surge in oil prices, which hit their highest level since mid-2015 after Saudi Arabia’s crown prince cemented his power with an anti-corruption crackdown.
Oil majors Woodside Petroleum Ltd and Oil Search Ltd rose as much as 2.5 per cent each.
Global miner BHP Billiton Ltd rose 3.0 per cent to its highest since June 2015, while peer Rio Tinto Ltd climbed for a fifth straight session to its highest since Aug 2011.
Australia’s central bank holds its monthly policy meeting later in the session and is expected to keep its cash rate at a record low of 1.5 per cent.