Australian shares rose on Monday, led by index heavyweight miners on the back of higher gold and iron ore prices, while news of Iran and the U.S. agreeing to halt recent hostilities and renew talks supported appetite for risk assets.

The S&P/ASX 200 index ASX:XJO climbed 0.6% to 8,817.78 by 0013 GMT. The benchmark rose 0.2% on Friday.

Iran and the United States agreed to halt recent hostilities in the Gulf and renew their talks regarding their dispute over the Strait of Hormuz, a U.S. official said, adding that the Strait would be reopened for traffic.

In Sydney, mining stocks ASX:XMM rose 0.9%, as strong iron ore prices helped index heavyweights. BHP ASX:BHP and Fortescue ASX:FMG both gained 0.5%.

Gold stocks ASX:XGD led gains in the sector with a 2.3% rise. Bullion prices rose on Friday as the U.S. dollar weakened and expectations of a Federal Reserve interest rate hike eased on inflation data.

Evolution Mining ASX:EVN climbed 2.5% on Monday, while Northern Star Resources ASX:NST added 0.9%. Ramelius Resources ASX:RMS jumped as much as 4.7% after agreeing to sell the Edna May Gold Hub to Forrestania Resources ASX:FRS for A$300 million ($206.73 million).

Financials ASX:XFJ advanced 0.7%. Three of the 'big four' banks - Commonwealth Bank of Australia ASX:CBA, Westpac ASX:WBC and National Australia Bank ASX:NAB - rose between 0.5% and 0.6%, while ANZ ASX:ANZ slipped 0.2%.

Among individual stocks, Neuren Pharmaceuticals ASX:NEU surged as much as 31.4% after its Rett syndrome drug DAYBU was recommended for approval in the European Union.

That helped the healthcare sub-index ASX:XHJ rise 0.5%, although gains were limited by CSL's ASX:CSL fall.

CSL said it expects to cease new patient initiation in European markets for its TAVNEOS drug following regulatory setbacks.

Technology stocks ASX:XIJ rebounded 4.5% after losing nearly 5.2% last week. WiseTech Global ASX:WTC was up 4.1%.

Energy stocks ASX:XEJ added 0.2%, helped by a 3.4% jump in Karoon Energy ASX:KAR after the oil and gas producer said it would buy back shares as it restarted its SPS-92 well.

In New Zealand, the benchmark S&P/NZX 50 index NZX:NZ50G was up 0.4% at 13,543.94.

($1 = 1.4512 Australian dollars)