Australia: Mining, energy stocks help shares end the day higher

[SYDNEY] Australian shares closed higher on Monday, boosted by mining and energy stocks on strong underlying commodity prices, while telco Telstra rose after it agreed to buy Digicel Pacific.

Telstra Corp climbed as much as 3 per cent after saying it would buy Digicel Pacific in a US$1.19 billion deal largely funded by the Australia government. The deal is seen as a way to block China's rising influence in the region.

"This seemed like a smart deal as global economies continue to grow wary of China's influence, but it might be a challenge for Telstra to operate the business efficiently," said Damien Rooney, director of equity sales, Argonaut.

The S&P/ASX 200 index rose 0.3 per cent to 7,441, led by a 2.6 per cent rebound in energy stocks after a four-day losing streak.

Oil prices extended pre-weekend gains to hit multi-year highs as global supply remained tight amid solid fuel demand in the United States and elsewhere in the world.

Beach Energy rose 5.1 per cent to lead gains on the sub-index, while Woodside Petroleum advanced 3.7 per cent.

Origin Energy rose 3.9 per cent after agreeing to sell its 10 per cent stake in the Australia Pacific LNG project for A$2.12 billion (S$2.13 billion) to investor EIG Partners.

Miners rose 1.3 per cent as iron ore futures rebounded after last week's heavy sell-off.

Rio Tinto, Fortescue Metals and BHP Group climbed between 0.7 per cent and 1.5 per cent.

Lithium miner Mineral Resources rose 9 per cent to lead gains on the benchmark index after announcing plans to restart production at its Wodiga lithium mine in the third quarter of fiscal 2022.

New Zealand's benchmark S&P/NZX 50 index fell 0.3 per cent to 13,093.24.

REUTERS