Shares have closed 1.76 per cent higher on the Australian market as investors remain optimistic the US can approve an economic aid package.

The S&P/ASX200 benchmark index closed higher by 105.4 points, or 1.76 per cent, at 6110.2 points on Monday.

The All Ordinaries index closed higher by 102.2 points, or 1.66 per cent, at 6247.1.

The Australian dollar was buying 71.67 US cents at 1619 AEST, lower from 72.12 US cents at Friday’s close.