Australian shares have jumped in early trade with easing COVID-19 restrictions fuelling hopes for a resurgence in consumer demand and gradual economic recovery.

However, it might be another volatile week for the share market due to unresolved Australia-China trade tensions.

By 10.55am AEST on Monday, the benchmark ASX 200 index was up 0.9 per cent to 5455 points.

This was despite weakness across the largest banks Westpac (-0.5pc), NAB (-0.4pc), Commonwealth Bank (-0.3pc) and ANZ (-0.2pc).

But it was more than offset by the iron ore mining giants BHP (+2.8pc), Rio Tinto (+2.4pc) and Fortescue Metals (+3.4pc), which are providing a major boost to the market.

Most of the best performers were gold stocks like Saracen Mineral (+8pc), St Barbara (+7.2pc) and Newcrest Mining (+5.7pc).

This was after spot gold jumped (+1pc) to $US1,759.43 an ounce, around its highest value in seven years.

On the flip side, some of the worst performers were Macquarie Group (-2.5pc), Unibail Rodamco Westfield (-1.6pc) and United Malt Group (-1.5pc).

The Australian dollar had risen slightly (+0.2pc) to 64.27 US cents.

Brent crude oil surged (+3pc) to $US33.48 a barrel, while iron ore lifted 1.6 per cent to $US93.65 a tonne.

More to come

-ABC