Australian shares closed slightly higher, driven by gains in the telecommunications and financial sectors.
At the close on Monday, the benchmark S&P/ASX200 index was up 11.9 points, or 0.28 per cent, at 4,297, while the broader All Ordinaries index was up 9.2 points, or 0.21 per cent, at 4,351.9.
On the ASX 24, the June share price index futures contract was up 23 points at 4,308, with 25,064 contracts traded.
The rise was driven by monetary easing in China, but the gains were held back by losses in the resources sector, IG Markets market strategist Stan Shamu said.
China’s central bank reduced its reserve required ratio – freeing up cash to lend – to stimulate the economy following disappointing import and export data last week.
“There was a lift in risk assets early on, particularly in the resource space, but unfortunately through the day the uncertainty coming from Greece weighed on most of the risk assets,” Mr Shamu said.
New elections may have to be called in Greece, a prospect dreaded by the European Union as it could mean further delays to the country’s promised structural reforms.
Uncertainty over Greece led to the Australian dollar falling below partiy with the US dollar on Monday to a five-month low around 99.99 US cents.
Locally, high dividend paying telco and banking stocks performed well.
Telstra posted a four cent gain to close at $3.64.
Commonwealth Bank was the best performer of the big banks, up $1, or 1.9 per cent, to $52.40, ANZ was 16 cents higher at $22.20, National Australia Bank was 25 cents higher at $24.80.
Westpac was 65 cents lower at $22.07 after it went ex-dividend.
The mining giants were mixed but the overall sector was down.
BHP Billiton was nine cents up at $34.46, Rio Tinto was seven cents weaker at $61 and Fortescue Metals was down five cents at $5.34.
Australia’s largest goldminer Newcrest Mining lost 10 cents to $25.65 while oil and gas major Santos gave up 17 cents, or 1.32 per cent, to $12.69.
The price of gold in Sydney was $US1,577.35 per fine ounce, down $US4.40 on Friday’s close at $US1,581.75.
National turnover was 1.49 billion shares worth $4.23 billion,with 401 stocks up, 547 down and 424 unchanged.