Iron ore miners have powered the Australian share market higher, despite investors getting nervous about a report Donald Trump will put sanctions on Chinese officials.

The S&P/ASX200 benchmark index closed up 40.9 points, or 0.62 per cent, to 6675.0 on Monday.

The All Ordinaries added 43.6 points, or 0.64 per cent, to 6908.9.

The materials sector finished 1.53 per cent higher as iron ore prices remain high due to strong demand from China.

There was a mid-session dip in trade after a report US President Trump will put financial sanctions on at least a dozen Chinese officials over their alleged role in Beijing’s disqualification of elected opposition legislators in Hong Kong.

The Aussie dollar was buying 74.30 US cents at 1622 AEDT, up from 74.27 US cents at Friday’s close.