Global markets ensured a positive finish to the week by notching a solid gain Friday night on hopes for a US budget deal.
US stocks opened tentatively amid a weaker-than-expected consumer sentiment read.
But the buying momentum accelerated into the close of trading amid speculation Republicans were ready to accept an increase in the debt ceiling and the reopening of government.
The Dow climbed 111 points (+0.7%) to 15237, the S&P500 rose 31 points (+0.8%) to 1703 and the Nasdaq put on 10 points (+0.8%) to 3792.
However hopes for a debt deal were dealt a blow on the weekend, after negotiations between President Obama and House Republicans broke down again.
It is now up to the US senate to make headway on a deal, which must be sealed this week otherwise the US may suffer a calamitous default.
Most commodities didn’t take part in the equity market rally. Oil dropped 1% to US$102.02 a barrel after the IAEA forecast a big increase in non-OPEC crude supply in 2014.
Gold also slumped, ending a nightmare week for the yellow metal, which plunged 3% over the five sessions as signs of a budget deal diminished safe haven appeal.
In currency markets, the greenback jumped versus the yen, as haven flows to the Japanese currency continued to ease.
Our dollar inched higher against its US counterpart, but with weekend data showing a surprise slide in Chinese exports last month, the local unit could come under pressure today.
In economic news, home loans data is due for release today at 11:30am, AEDT. The key regional focus will be on the latest Chinese CPI numbers, due out at 12:30pm, AEDT.