The ASX 200 advanced 43 points, or 0.5%, to end at 9,019 on Monday, reversing early declines and extending last week’s momentum.
Investor sentiment improved after U.S. stock futures rallied, buoyed by President Trump’s decision to hold off on further action against Iran.
Locally, July factory activity in Australia was revised higher, supported by easing inflation.
In main trading partner China, policymakers pledged continued monetary support in H2 2026, vowing to maintain liquidity and adjust tools as needed.
Domestic earnings season also drew focus, with AMP, Nick Scali, James Hardie and REA Group set to report, offering insight into corporate resilience amid the five-month Iran war. 4DMedical surged 9.1% to lead health names, while Treasury Wine Estates rose 5.9% atop consumer staples.
Three of the big four banks gained between 0.2% and 0.8%.
In contrast, energy stocks lagged as oil prices slipped, with Woodside down 1.4% and Santos off 1.9%.