The Australian share market has got off to a strong start, as strong cues from Wall Street and gains in oil prices lift stocks in key sectors.
The benchmark S&P/ASX200 index was up 0.8 per cent after the first half hour of trade, with mining, energy and banking shares leading the charge.
On Friday, US stocks advanced as a weaker-than-expected non-farm payrolls report dampened expectations for a September Federal Reserve interest rate rise, with traders trimming the probability of a September rate rise.
The Dow Jones industrial average rose 0.39 per cent, while the S&P 500 gained 0.42 per cent.
“We had pretty good leads from Wall Street on Friday, and that positivity has flown through our markets,” Australian Stocks Report’s head of trading Chris Conway said.
“This is a reprieve from the heavy selling last week, but I don’t think it’s the start of a broader recovery,” he added.
In the local market, materials shares were among the best performers in early trade.
Iron ore miner Fortescue was up 3.6 per cent at $5.02, while rival Rio Tinto gained 1.1 per cent to $16.47.
Shares in BHP Billiton jumped two per cent to $20.25 after the resources giant agreed to sell some of its offshore gas assets in Western Australia to Woodside Petroleum for up to $US400 million ($A528 million). Woodside shares were also up 1.4 per cent at $28.47.
Other energy shares, including Santos and APA Group were also up more than one per cent.
All four major banks were trading around one per cent higher.