Australian shares rose for a third straight session on Monday to their highest level in more than a month, led by strength in miners and broad-based buying ahead of year-end. The S&P/ASX 200 index closed up 0.9% at 8,699.9 points, its strongest finish since November 13. “Today’s gains signal that the traditional Santa Claus rally has finally kicked in,” said Tony Sycamore, market analyst at IG Australia. “If the ASX 200’s December low of 8547.1 holds, this compressed volatility leaves plenty of room for the rally to extend towards 8850 on ultra-thin volumes into year-end.” With markets closed on Thursday and Friday for holidays, trading is expected to remain subdued into year-end, with few catalysts beyond Tuesday’s release of minutes from the central bank’s final policy meeting of the year. Miners hit a record high as firmer iron ore and copper prices lifted Rio Tinto, BHP and Fortescue by between 1% and 1.7%. Gold stocks rose 4.1%, tracking bullion’s fresh peak on rising US rate-cut bets and a weaker dollar. Financials gained 0.3% and are up nearly 3% in December after a 7.4% drop in November driven by valuation and earnings concerns. Commonwealth Bank of Australia added 0.3% and ANZ added 0.7%. Marc Jocum, investment strategy and research manager at Global X ETFs, said banks’ prospects are brightening into 2026 as markets price in higher-for-longer interest rates. “Deposit repricing and stabilising net interest margins will support earnings even as competition remains intense.” Investors have increased bets on further Reserve Bank of Australia tightening after hawkish signals and resilient economic data. Markets now fully price a quarter-point rate hike by June and give roughly a 25% chance of a move by February. Meanwhile, New Zealand’s benchmark S&P/NZX 50 closed 1.3% higher at 13,508.30 points.