A rally in banks and miners helped the sharemarket start the week on a positive note after tariff exemptions for the technology industry spurred optimism for a further scaling back of US President Donald Trump’s chaotic trade agenda.

The S&P/ASX 200 climbed 102.1 points, or 1.3 per cent, to 7748.6 points at the close, while the All Ordinaries rose 1.4 per cent. Ten of the ASX 200’s 11 sectors were higher, with technology posting the largest gains.

A rally in banks and mining stocks gathered momentum through the session. Iron ore stocks tracked a rise in the price of the steelmaking ingredient, buoyed by hopes for a China-US trade deal.

Index bellwether BHP jumped 2.7 per cent to $36.37 and Mineral Resources 8.2 per cent to $18.04. Australia’s four big banks all rose more than 1 per cent, led by Commonwealth Bank, which finished up 1.7 per cent to $157.29, and Westpac, up 1.6 per cent to $30.51.

Equities and US futures rose after the Trump administration on Friday (Saturday AEST) published a list of electronics goods that would be excluded from import taxes, including computer hardware and smartphones. While it was welcome news for technology manufacturers such as Apple and Nvidia, the White House later said the exclusion was temporary until it introduces a new tariff specific to semiconductors.

Absence of bad news

IG analyst Tony Sycamore expected Monday’s market bounce to be short-lived, warning investors could have an outsized reaction to economic data or company earnings results that reveal the damage caused by tariffs.

“A lot of the selling was flushed out [of the market] last week and in the absence of … bad news, we have short-term relief,” he said. “But are the ASX 200 and the Nasdaq now going to retest their highs from February this year? I just can’t see it.”

A cautious rally in ASX 200 technology stocks gathered steam on Monday after WiseTech jumped 3.1 per cent to $86.74 and TechnologyOne 2.8 per cent to $28.50. Real estate stocks were buoyed by data centre plays Goodman Group and Vicinity Centres, up 2.4 per cent to $28.12 and 2.3 per cent to $2.26 respectively.

Gold miners continued Friday’s rally after the price for the precious metal set a record. Newmont jumped 4.5 per cent to $87.04. Separately, De Grey Mining advanced 1.6 per cent to $2.54 after its biggest investor, Gold Road Resources, said it would vote in favour of Northern Star’s takeover of the ASX-listed gold miner.

Stocks in focus

In corporate news, Neuren Pharmaceuticals posted the index’s biggest gain, rallying 21.11 per cent to $11.13 after the US Food and Drug Administration signed off on the outcomes of a key drug trial, paving the way for final approval later this year.

DroneShield shares leapt 16.3 per cent to $1.04 after the business secured five repeat contracts worth $32.2 million from a “close military ally of Australia in the Asia-Pacific region”.

All Ordinaries stock Australian Strategic Materials added more than a fifth of its value on Monday, soaring 21.8 per cent to 47.5¢ after China suspended exports on a wide range of critical rare earths metals in a move investors see as potentially boosting demand for producers without operations in China.