Australian stocks have jumped to fresh five-year highs in response to gains on global stock markets on Friday night.

The local market has climbed more than half a per cent to its higher level since mid 2008.

“It looks like a good firm opening and that just follows on from the US on Friday night,” CMC chief market analyst Ric Spooner said.

US and European markets finished last week on a positive note as the end of the US government shutdown continued to buoy investor sentiment.

Mr Spooner said the local market was now at an “inflection point” which could see it either gain steadily over the coming weeks or drop back as investors collect profits.

“It will be interesting to see which way the market plays it over the coming days,” he said.

The gains were widespread across the market on Monday, with all major sectors recording rises.

Among the miners, BHP Billiton was 32 cents higher at $36.07, Rio Tinto was up 28 cents to $63.78 and Fortescue Metals Group had gained eight cents to $5.38.

Woolworths was 85 cents, or 2.5 per cent, higher at $34.81 while Telstra was one cent higher at $5.04.

The big four banks were all stronger, with Westpac up 35 cents to $34.35, ANZ 26 cents higher to $32.12, National Australia Bank climbing 28 cents to $36.26 while the Commonwealth Bank had jumped 42 cents to $74.59.

KEY FACTS

* At 1020 AEDT on Monday, the benchmark S&P/ASX200 index was 37.3 points, or 0.7 per cent, higher at 5,358.8 points.

* The broader All Ordinaries index was up 37.1 points, or 0.7 per cent, at 5,358.1.

* The December share price index futures contract was 31 points higher at 5,352, with 6,298 contracts traded.

* National turnover was 219 million securities worth $345 million.