Australia's share market has started the week on the right foot, posting its best day in more than three weeks.
The benchmark S&P/ASX200 rose 75.1 points, or 0.85 per cent, to 8,862.8 on Monday, as the broader All Ordinaries gained 69.3 points, or 0.76 per cent, to 9,148.5.
The local bourse's best day since September 4 came as investment funds rebalanced portfolio's into the month and quarter-end, IG Markets analyst Tony Sycamore said.
"Broadly speaking, the ASX 200 has tracked sideways this month, whereas other indices like the Nikkei and US indices have all gone absolutely crazy to a degree," Mr Sycamore told AAP.
"That makes our stock market a prime candidate for rebalancing buying for these big money funds."
Local banks led the charge as financials stocks rallied 1.7 per cent and health care stocks enjoyed a healthy 1.3 per cent rebound from last week's sell-off, as nine of 11 sectors closed higher.
"We've got one more day to go before month-end, and I wouldn't be surprised to see some of those rebalancing flows drift into the market again tomorrow," Mr Sycamore said.
Gold miners returned to form as the precious metal hit a fresh record of $US3,815 ($A5,808) an ounce during the session, pushing Newmont and Evolution each more than four per cent higher, as Northern Star rallied 3.1 per cent to $23.45.
Materials stocks more broadly managed to lift by 0.3 per cent despite large caps BHP (-0.7 per cent), Rio Tinto (-1.6 per cent) and Fortescue (-2.1 per cent) weighing on the segment amid stagnant iron ore prices.
Health care stocks clawed back half the previous week's 2.6 per cent loss as more companies assured investors they were exempt from long-awaited US pharmaceutical tariffs.
Blood plasma giant CSL rose 2.5 per cent to $199 a share, still a roughly 25 per cent discount to its pre-earnings price in mid-August, when it slashed earnings guidance and flagged a major restructure.
Australia's IT sector was the worst performer on Monday, sliding 0.6 per cent as segment giant WiseTech Global sold off after its billionaire founder Richard White cashed out $240 million in stock late on Friday. Mr White remains the company's biggest shareholder.
Energy stocks also faded, shedding 0.4 per cent as coal miners and uranium plays traded lower. Whitehaven was heavy, falling more than three per cent as it continued with its on-market buyback.
Australian defence technology company Droneshield tore through its previous high to outperform the top-200, spiking more than 20 per cent to $4.59, taking its gains for the year above 500 per cent.
The Australian dollar is buying 65.64 US cents, up from 65.36 US cents on Friday at 5pm as FX traders look to Tuesday's Reserve Bank meeting.
With a near-zero chance of an interest rate cut until at least November, analysts are tipping a hawkish tone from the central bank after last week's hotter-than-expected partial inflation print of three per cent in the year to August.
ON THE ASX:
* The S&P/ASX200 rose 75.1 points, or 0.85 per cent, to 8,862.8
* The broader All Ordinaries gained 69.3 points, or 0.76 per cent, to 9,148.5
CURRENCY SNAPSHOT:
One Australian dollar trades for:
* 65.64 US cents, from 65.36 US cents on Friday
* 97.71 Japanese yen, from 97.88 Japanese yen
* 56.02 euro cents, from 55.97 euro cents
* 48.86 British pence, from 48.91 British pence
* 113.44 NZ cents, from 113.33 NZ cents
