The Australian share market has closed at its highest level since May, as investors were encouraged by separate moves to stimulate the US economy and keep the bailout of the debt-ridden euro zone on track.
Strong gains from mining companies pushed the broader market higher.
At 1615 AEST, the benchmark S&P/ASX200 index had risen 12.5 points, or 0.28 per cent, to 4,402.5 points, while the broader All Ordinaries index lifted 11.6 points, or 0.26 per cent, to 4,421.8 points.
On the ASX 24, the September share price index futures contract was up six points at 4,398 points, with 91,032 contracts traded, according to preliminary calculations.
Last week, the US Federal Reserve introduced a quantitative easing package, agreeing to buy mortgage-backed securities to stimulate the US economy, while Germany's top court approved the euro zone's bailout fund and fiscal pact.
CMC Markets chief market analyst Ric Spooner said resources stocks had boosted the market on Monday.
"I think what's happening there is essentially a response to the good news (last week)," he said.
"Cumulatively, all those things have the potential to restore confidence a little bit.
"The market is re-assessing the commodity outlook based on the Federal Reserve's action, which is flowing through to some of the resources stocks."
Mr Spooner said the latest move by the US to stimulate its economy would be helpful to China's export-oriented economy which, in turn, could demand more resources from the likes of Australia.
In the resources sector, global Miner BHP Billiton added 84 cents to $34.15, and Rio Tinto gained 92 cents to $57.50.
Northern Iron was 5.5 cents lower at 81 cents as the steep drop in iron ore prices prompted the company to suspended its exploration program.
Among the major banks, National Australia Bank was seven cents richer at $25.48, ANZ firmed 16 cents to $24.39, Commonwealth Bank nudged up one cent to $55.29, and Westpac advanced 31 cents to $24.42.
Among other stocks, contract miner and construction group Macmahon Holdings was in a trading halt amid expectations of a downgraded earnings forecast. Macmahon last traded at 53 cents.
Casinos operator Echo Entertainment was steady at $4.12 as it said gross revenue for the group in the first 10 weeks of the 2013 financial year had risen 11.1 per cent compared to the same time one year ago.
Qantas was steady at $1.24 after regulators extended a codesharing arrangement between the airline and South African Airways on routes between Sydney and Johannesburg but for not as long as the Australian carrier had hoped.
Preliminary national turnover was 1.66 billion securities worth $4.23 billion, with 479 stocks up, 486 down and 335 unchanged.
