Australian shares rose on Monday, led by miners on the back of strong iron ore prices, while De Grey Mining surged after the gold miner received a buyout offer from larger rival Northern Star Resources.

The S&P/ASX 200 index rose 0.2% to 8,455.0, as of 1140 GMT.

The benchmark slipped 0.1% on Friday. Heavyweight miners advanced 0.2%, as iron ore prices rose on stronger economic outlook for top consumer China.

Mining behemoth BHP Group rose 0.2%, while Rio Tinto jumped 0.4%.

Gold stocks fell 0.5% despite a surge in De Grey Mining, which received a buyout offer from Northern Star Resources, valuing the firm at A$5 billion ($3.25 billion).

De Grey rose as much as 29.6% to hit its highest level since April 2008, making it the biggest gainer on the benchmark.

However, shares of Northern Star Resources fell as much as 5.2% to make it the top loser.

Gold Road Resources, another miner which is the biggest stakeholder in De Grey Mining, benefited from the news of the buyout too, with shares rising about 11.5% to hit a record high.

Technology stocks added 0.8%, tracking gains in their Wall Street peers on Friday. Software developer Xero jumped 0.6%.

Energy stocks followed the broader benchmark to gain 0.4%, with sector majors Woodside Energy and Santos rising 0.5% and 0.2%, respectively.

Australian shares struggle for direction as gold stocks drag; NAB tumbles

Among other individual stocks, Metcash advanced 2.2% after the wholesaler reported an increase in its food segment earnings while announcing its half-year results.

Meanwhile, New Zealand’s benchmark S&P/NZX 50 index was largely flat.