The Australian share market has closed higher for a third straight trading session, buoyed by mining and financial stocks.
The benchmark S&P/ASX 200 index closed up 13.7 points, or 0.22 per cent at 6,286 points on Monday at a fresh 10 1/2-year high, while the All Ordinaries index gained 10.7 points, or 0.17 per cent, at 6,366.4 points.
Patersons Securities economist Tony Farnham says the local market has shrugged off tariff concerns despite a great deal of uncertainty remaining.
“It’s almost like a world of fantasy or make believe,” he said.
The first round of US tariffs on $US34 billion of Chinese imports took effect on Friday, which saw a reciprocal move by the Chinese.
The materials sector was the top performer locally, in part because of a weaker US dollar, Mr Farnham said.
Resource heavyweight BHP Billiton also benefited from unconfirmed reports US oil giant BP is in the lead to acquire its US onshore shale oil and gas assets for more than $US10 billion.
BHP jumped 2.1 per cent to $71.00, Rio Tinto rose 1.4 per cent to $80.91 and Iluka Resources added 2.1 per cent to $11.49.
The local heavyweight financials sector also performed strongly ahead of earnings results from major US banks, including Citigroup, JPMorgan and Wells Fargo on Friday, Mr Farnham said.
Investment bank Macquarie Group rose 0.5 per cent to $123.63, financial services firm Perpetual gained one per cent to $43.89 and Commonwealth Bank added 0.6 per cent to $76.10.
Meanwhile, the Australian dollar rose as the greenback came under pressure after weaker-than-expected US wages growth on Friday.
The Australian dollar was trading at 74.60 US cents at 1700 AEST on Monday, up from 74.09 US cents on Friday.
ON THE ASX:
* The benchmark S&P/ASX 200 was up 13.7 points, or 0.2 per cent, at 6,286.
* The broader All Ordinaries index was up 10.7 points, or 0.17 per cent, at 6,366.4 points
* The SPI200 futures contract was up 16 points, or 0.26 per cent, at 6,240 points at 1630 AEST
CURRENCY SNAPSHOT AT 1700 AEST:
One Australian dollar buys:
* 74.60 US cents, from 74.09 US cents on Friday
* 82.431 Japanese yen, from 81.957 yen
* 63.42 euro cents, from 63.21 euro cents
* 56.06 British pence, from 55.96 pence
* 109.09 NZ cents, from 108.71 cents
The spot price of gold in Sydney at 1700 AEST was $US1,260.20 per fine ounce, up from $US1,256.49 per fine ounce on Friday.