Australian shares rose almost 1 percent on Monday, climbing for a third consecutive session, as the Bank of Japan's decision to cut a benchmark interest rate below zero buoyed market sentiment. The S&P/ASX 200 index rose 38.08 points to 5,043.60 at the close of trade. The benchmark was up 0.76 percent on Monday. New Zealand's benchmark S&P/NZX 50 index edged up 0.07 percent or 4.27 points to finish the session at 6174.49.
Australian index has been on an upward trend since hitting a more than a two-year trough of 4,803.9 on January 18. Financials led the way, firming nearly 0.5 percent across the sector. Shares in ANZ Banking Group and Suncorp Group both gained more than 2 percent, while National Australia Bank rose nearly 1.5 percent. Australia health stocks rallied strongly, led by Japara Healthcare Ltd, which rose more than 5 percent.
Analysts said market direction was now likely to be determined by the Reserve Bank of Australia's interest rate decision on Tuesday and corporate earnings, beginning next week. Among the biggest gainers was New Zealand Refining, which climbed 1.6 percent on an improvement in oil prices.