Investors were relieved following the French election result on Monday morning, sending shares broadly higher, though a drop in the iron ore price weighed on the miners.
Tech stocks outstripped the broader market and investors had a solid appetite for financials and energy stocks.
The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each rose 0.3 per cent to 5871.8 points and 5900.7 points respectively. The four major banks provided the backbone to the day's gains, as they all gained between 0.5 per cent and 0.9 per cent, while Macquarie Group added 1.6 per cent. Lenders gained despite a prominent broker calling the top of the housing price cycle.
The prospect of a centrist party defeating a populist, right-wing contender in France was enough to see safe-haven refuge gold sink the most in over seven weeks, before recovering somewhat through Monday trade. Leading gold miner Newcrest sank as much as 2 per cent before finishing the session flat as investors moved in.
"We are topping up our gold exposure today as this gold weakness is just in response to the equity market expecting a smoother outcome in France," said Grant Oshry, senior small cap portfolio manager at Perennial Value Management.
"But I'm not so sure how smooth things will be over the next fortnight. Concerns around North Korea's nuclear program highlights how geo-political tensions globally haven't dissipated and this supports a position in gold as a hedge."
There was appetite for technology stocks across the ASX, with software-as-a-service company Aconex jumping 2.3 per cent, despite there being no specific news out. Aconex is one of the most shorted stocks on the market, according to recent ASIC data, and is up over 30 per cent for the last month.
As such, some traders suggest the rapid rise in the share price is placing pressure on short sellers to buy shares back in order to close out bets that the price will fall.
Elsewhere in technology, Computershare enjoyed a 1.3 per cent lift, while iSentia Group was up 1.8 per cent and software company Altium was up 2.3 per cent.
Chinese iron ore futures tumbled again on monday as steel prices in China dipped. As such, resource heavyweights BHP Billiton and Rio Tinto were drags on the overall bourse, off 0.4 per cent and 0.7 per cent respectively.
In a slew of corporate activity, Spotless shares slipped 0.5 per cent after shareholders rejected Downer EDI's $1.2 billion take over offer, arguing it does not represent "adequate value".
Downer, which owns 19.9 per cent of Spotless, has offered $1.15 per share for the company, and was closed flat at $5.63.
Stock Watch: Tassal Group
Shares in salmon producer Tassal Group jumped 2.8 per cent after the company confirmed positive environmental improvement results at Macquarie Harbour. According to the company there is clear evidence, following the latest survey findings, that Tassal's Middle Harbour lease 214 and Gordon lease 219 are back to 100 per cent full compliance. Last month the Tasmanian-based company announced it was seeking to raise $80 million from the market, with help from Goldman Sachs and UBS, and a further $20 million via a share purchase plan. Total raising proceeds have been ear-marked for "a range of working capital and capital investment initiatives to meet the continued growth in domestic demand for salmon and take advantage of the ongoing strength in operating conditions."
Market Movers
Village Roadshow
Shares in Village Roadshow slumped 6.5 per cent on Monday after the company warned the market its theme park division could see a decline of up to 37 per cent in earnings this year. Visitors have avoided theme parks this year following the tragic accident at Ardent Leisure Group's Dreamworld theme park last October. In addition, the cyclonic weather conditions throughout Queensland in March and April have also dissuaded customers from visiting the theme parks. Ardent Leisure Groups is off 1.5 per cent on Monday.
French election
The euro shot to its highest level in five years following the first round election results in France where Emmanuel Macron and far-right nationalist Marine Le Pen won. This triggers a runoff on May 7 that's likely to be won by Macron, according to opinion polls. The second round line-up avoids the scenario of a contest between the anti-euro Le Pen and the Communist-backed Jean-Luc Melenchon, curbing risk for the euro zone. With the French poll subsiding as a risk factor, investors' attention may now return to central-bank policies and the chance of a US shutdown.
Chinese shares
Chinese stocks have dropped the most in three months as a sell-off spread to defensive shares, this year's best performers. Analysts believe that tightening supervision, such as a crackdown on leveraged trading, has dented sentiment. The Shanghai Composite index fell as much as 1.9 per cent, the biggest intraday loss since Jan. 16, before paring declines to 1.2 per cent in late Monday trade. The ChiNext small-cap index, seen as a barometer for Chinese stock-market sentiment, was headed for its lowest close since September 2015.
Gold
Gold sank the most in more than seven weeks as investors returned to riskier assets on speculation pro-growth centrist Emmanuel Macron will become France's next president after the first round of voting, potentially removing a threat to the euro zone from one of the region's top economies. Bullion was fetching $1270.75 an ounce. Analysts remain upbeat on the yellow metal: Standard Chartered and Bank of America Merrill Lynch say the metal is headed towards $US1300 an ounce, while Societe Generale recommends investors take long positions in the metal.
