Australian shares rose on Monday by their most in almost seven weeks, led by mining and financial stocks, as global sentiment was boosted by a deal between U.S. President Joe Biden and House Speaker Kevin McCarthy to suspend the government’s debt ceiling.

The S&P/ASX 200 index closed 0.9% higher at 7,217.4-points, posting its biggest daily gain since April 11.

After weeks of negotiations, McCarthy and Biden forged an agreement late on Saturday to avert an economically destabilising default to suspend the $31.4 trillion debt ceiling until 2025. The deal will now have to passes through the narrowly divided Congress.

“Australian stocks are playing a little bit of a relief rally on hopes that maybe the US will not default for the upcoming future,” said Henry Jennings, a senior Analyst at Marcustoday Financial Newsletter.

Commenting on the near-term outlook for Australian stocks, Jennings said June can go into the doldrums a little bit due to stock loss selling and tax loss selling, as well the market being in the end of year.

Australian shares set for worst week in two months; US debt deal in focus

With the Fed meeting in mid-June and the market expecting a 25 basis-point hike, the Reserve Bank of Australia might follow the suit, Jennings added.

In Sydney, miners rose 1.2%, with behemoths BHP Group, Rio Tinto and Fortescue Metals closing higher.

Financials rallied 1.2%, with the “big four” banks closing in positive territory. Energy stocks added 0.7%.

Among single stocks, AMP rose 1.9% after naming Blair Vernon as its chief financial officer and saying the company would dissolve the structure of its local wealth management arm in a bid to simplify its operational model.

New Zealand’s benchmark S&P/NZX 50 index rose 0.9% to 11,935.65.