Global share markets have rallied as tensions eased between the US and North Korea.
Nearly $US1 trillion was wiped off the value of global share markets last week because of geopolitical tensions.
South Korea's president said resolving North Korea's nuclear ambitions must be done peacefully and US officials played down the risk of war and said it was not imminent.
China said it would block some North Korean imports in three weeks' time under United Nation's sanctions imposed because of Pyongyang's nuclear and missile programs.
The Chinese customs agency said it would stop processing North Korean imports of coal, iron and lead ores, and fish from midnight on September 5.
The US has also asked China to help stop North Korea's development of nuclear weapons.
But, overnight, US President Donald Trump signed an executive order that asks the US trade office to possibly investigate China's alleged theft of American technology and intellectual property.
He wants the trade office to look at practices that force US companies to share their trade secrets in order to gain access to the Chinese market.
Mr Trump indicated there could be more action against China on trade issues when he said, "This is just the beginning," after signing the memo at the White House.
US and Europe make solid gains
Turning to the markets, technology stocks and banks drove the gains on Wall Street.
Fiat Chrysler rose after a report that a Chinese car market offered to buy the company. Fiat Chrysler rejected the offer.
Snap Inc, the owner of social media firm, Snapchat, fell to a record low before rising 6.5 per cent to $US12.60.
The company issued a disappointing quarterly report last week which saw its shares fall 14 per cent on Friday.
Big investors reported changes to their holdings and employees became eligible to sell their shares.
The S&P 500 jumped 1 per cent marking its biggest one-day percentage gain since April.
The Nasdaq also made strong gains.
In Europe, banks led a relief rally.
In futures trade here, the ASX SPI 200 index is making ground which indicates the local share market will open higher today.
Investors will cast their eye over the release of the minutes from the Reserve Bank's latest board meeting earlier this month.
Commodities slide
Spot gold fell back as geopolitical tensions eased.
Oil prices fell nearly 3 per cent on a stronger greenback and after signs of weaker demand from China, the world's second biggest oil consumer.
Data from last month showed that Chinese refineries operated at their lowest daily rates since September 2016.
Weaker monthly data from China, showing a distinct slow in the construction sector, also pulled down iron prices.
The Australian dollar also lost ground on the stronger greenback falling more than 50 cents to below $US0.79.
