Australian stocks have fallen due to concerns about the crisis in the Ukraine, but a recovery in afternoon trade meant losses were modest.
Data showing a healthy Australian business environment spurred the strong rally late in the day.
Company profits rose for the fourth consecutive quarter, pointing to a solid rise in December quarter economic growth figures to be released later this week.
CMC Markets chief market strategist Michael McCarthy said the current view among traders was optimism that the Ukraine crisis would not lead to war.
However it was still a day in which investors avoided any risk, due to the threats posed to world trade flows, which saw mining stocks hardest hit.
BHP Billiton dropped 98 cents, or 2.6 per cent, to $37.40, Rio Tinto shed $1.05, or 1.6 per cent, to $65.79 and Fortescue Metals dropped nine cents to $5.35.
Gold and energy stocks lifted on safe haven buying, and the threat of disruptions to Russian gas supplies to Europe.
Newcrest Mining gained 65 cents, or 5.7 per cent, to $11.99, Oil Search added 19 cents to $8.84, Santos rose by 23 cents to $13.87 and Woodside was 37 cents higher at $38.32.
KEY FACTS
* At the close on Monday, the benchmark S&P/ASX200 index was down 20.5 points, or 0.38 per cent, at 5,384.3 points.
* The broader All Ordinaries index was down 18 points, or 0.33 per cent, at 5,397.4 points.
* The March share price index futures contract was down seven points at 5,389 points, with 33,394 contracts traded.
* National turnover was 1.9 billion securities worth $5.1 billion.
