SYDNEY: Australian shares closed higher on Monday, boosted by mining stocks, after the country's Covid-19 hotspot state of Victoria reported its lowest single-day rise in new infections in nearly three months.

The S&P/ASX 200 index ended 0.7% higher at 5,899.5.

Victoria recorded 35 new Covid-19 cases, with residents in its capital Melbourne now allowed outside for exercise for two hours, double the limit under the original lockdown measures.

The gold index marked its biggest intraday percentage jump in more than three weeks, ending 3.3% higher, as bullion prices rose due to a weak dollar.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index ticked up 0.4% to finish at 11,790.54.

The market found support from Prime Minister Jacinda Ardern's announcement that the coronavirus restrictions will lift on Sept. 21, except in its biggest city, Auckland, which is the epicentre of a second wave of infections.

"Easing (of) restrictions is a positive," said Damian Rooney, director of equity sales at Argonaut.

Among shares and sectors, Rio Tinto led the gains with its near 4% rise, while Fortescue Metals Group and BHP Group added 2.1% and 1.9%, respectively.