Shares have started the week higher on the Australian market and most of the help has come from the energy and materials sectors.

The S&P/ASX200 benchmark index was higher by 46.3 points, or 0.70 per cent, to 6585.5 at 1200 AEDT on Monday.

The All Ordinaries was higher by 51.7 points, or 0.76 per cent, to 6791.6.

While US markets closed lower on Friday, all ASX sectors have started the week higher except for property.

Materials, which includes the miners, was higher by 2.22 per cent and energy was up 2.2 per cent.

Australia’s economy has been boosted by New South Wales officials re-opening the border with Victoria after the latter overcame its lengthy battle with the coronavirus.

Flights between Sydney and Melbourne, the world’s second busiest air route, have also resumed.

NSW is the only jurisdiction open to people from all states and territories.

The Morrison government is extending an investment incentive to large foreign firms that have a business based in Australia.

In last month’s federal budget, Treasurer Josh Frydenberg introduced a scheme that temporarily allows businesses with a turnover of less than $5 billion to deduct the full cost of eligible assets.

The government will now introduce legislation to expand this incentive – known as temporary full expensing – to enable more large Australian-based businesses with a track record of investing in Australia to be eligible for the measure.

On the ASX, fuel supplier Ampol will buy back about $300 million in shares after it collected $635 million from the sale of a stake in its property trust.

Ampol said the off-market buy-back would benefit shareholders and be completed in the first quarter of its 2021 financial year.

The company collected $535 million from the sale of a 49 per cent interest in its property trust to Charter Hall and GIC consortium, announced in August.

Ampol shares were higher by 5.71 per cent to $30.05.

Oil Search was another energy provider doing well after a rise in world oil prices, higher by 3.95 per cent to $3.65.

The big miners were benefiting from good iron ore prices.

BHP rose by 4.12 per cent to $37.63, Rio Tinto increased by 1.95 per cent to $101.39 and Fortescue gained 5.84 per cent to $17.94.

Insurer IAG lost 5.76 per cent to $5.14 after completing a $650 million share sale announced on Friday.

The share sale followed a court decision that insurers could not deny coronavirus-related claims for business interruption insurance.

Among the banks, ANZ lost 0.08 per cent to $22.32, the Commonwealth shed 0.37 per cent to $79.90, NAB slipped by 0.02 per cent to $22.72 and Westpac gained 0.85 per cent to $20.08.

Shares in Bega Cheese were suspended from trading as the company plans to raise capital on the ASX.

Shares last traded at $5.06.

Looking further afield, Asian shares have edged up to record highs as hopes for imminent coronavirus vaccines buoyed investor sentiment.

Yet gains have been capped by worries over the impact of economic lockdowns and uncertainty over US stimulus.

The Aussie dollar was buying 73.20 US cents at 1200 AEDT, higher from 72.92 US cents at Friday’s close.