SYDNEY/WELLINGTON: Australian shares advanced on Monday on rising hopes of a broader economic recovery after US lawmakers approved a budget outline for President Joe Biden’s $1.9 trillion COVID-19 relief package, with heavyweight miners also benefiting from surging iron ore prices.

The approval will allow lawmakers to muscle Biden’s plan through in the coming weeks without Republican support.

Comments by the US Treasury Secretary Janet Yellen further lifted sentiment, after she predicted that the United States would hit full employment next year if Congress could pass its support package.

The S&P/ASX 200 index rose 0.6% to 6,880.7 at the close of trade.

Higher iron ore prices helped miners outperform all other sectors on the benchmark, as a positive demand outlook for the steelmaking ingredient in the world’s top steel producer China buoyed prices.