Australian share market rises as iron ore soars above $US140 per tonne

The benchmark S&P/ASX200 index added 0.8 per cent, or 59.6 points, to climb to 7561.2 at the closing bell, while the broader All Ordinaries rose by 0.9 per cent, to 7796.7.

At the end of the session, the Australian dollar had added 0.2 per cent to trade at a five-month high of US68.37c.

KCM Trade chief market analyst Tim Waterer said the “festive mood” in markets had continued after Christmas as investors began to feel more optimistic about the economic outlook heading into 2024.

“Essentially, markets are feeling better about the interest rate picture,” Mr Waterer said.

“We’re seeing inflation prints around the globe have been trending lower, which is shifting the mindset of the markets more towards an expected loosening of monetary conditions in 2024.”