The S&P/ASX200 rose 42.5 points on Monday, up 0.47 per cent to 9,019.3, as the broader All Ordinaries advanced 41.4 points, or 0.45 per cent, to 9,178.4.
The local energy sector underperformed the broader market, dipping 1.2 per cent after oil prices fell on reports the US and Iran were returning to the negotiating table.
"It surprises me how many times the market has been willing to give the US grace and favour over its claims about the peace situation in the Middle East," Moomoo Australian and NZ chief executive Michael McCarthy told AAP.
Meanwhile, volatility on Wall Street left many investors unsure where markets were heading next.
"It's all over the shop, and the increasing uncertainty that's coming with the absolutely radical movement in US shares is making investors all around the globe nervous, and Australia's are no exception," Mr McCarthy said.
Eight of 11 local sectors gained during the session, with strong performances from utilities, industrials and health care stocks.
Mining stocks recovered from a weak start to carve a modest 0.3 per cent improvement, although Fortescue weighed heavily as iron ore futures fell to a 13-month low of less than $US94 a tonne.
Fellow mega miners BHP and Rio Tinto ended the day either side of break-even, with Rio slipping 0.6 per cent despite copper rising to its highest price since early June.
Gold stocks were mixed but broadly higher as the yellow metal firmed to $US4,065 ($A5,783) an ounce, lifting the local sub-index 0.7 per cent.
The heavyweight financials sector also advanced, with Westpac leading three of the big four banks higher after completing the sale of its RAMS mortgage portfolio to a consortium led by Pepper Money.
Utilities stocks outperformed the market, the segment up 2.1 per cent, with strong performances from Origin and AGL as Origin continued to recover from its data breach-induced slump.
Consumer-facing segments also did well, with both staples and cyclicals improving by more than one per cent.
Airlines were also in favour, with Qantas and Virgin up more than two and three per cent respectively, helping support a 1.4 per cent lift in the industrials sector.
In company news, Vulcan Energy Resources shares jumped almost three per cent after it appointed former Lynas boss Amanda Lacaze to its board as an independent non-executive director.
The Australian dollar is buying 70.27 US cents, down from 70.33 US cents on Friday at 5pm.
ON THE ASX:
* The S&P/ASX200 rose 42.5 points, or 0.47 per cent, to 9,019.3
* The broader All Ordinaries advanced 41.4 points, or 0.45 per cent, to 9,178.4
One Australian dollar trades for:
* 70.27 US cents, from 70.33 US cents at 5pm AEST on Friday
* 110.16 Japanese yen, from 112.72 Japanese yen
* 60.96 euro cents, from 61.06 euro cents
* 52.20 British pence, from 52.28 pence
* 119.56 NZ cents, from 119.77 NZ cents
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