Australian shares extend the surge from offshore leads Equities Vanessa Desloires The Australian sharemarket climbed for a second day after Wall Street pushed through a resistance level to hit a record high and the promise of more stimulus in Japan lifted regional equities. 
The benchmark S&P/ASX 200 gained as much as 1 per cent but ran out of steam by the end of the session, closing up 0.3 per cent, or 16 points, to a fresh one-month high of 5353.2. The All Ordinaries also ended 0.3 per cent, or 16 points, higher at 5433.2.
While Wall Street's push to an all- time high may be fuelled by buying in bond proxy stocks such as utilities, consumer discretionary and telecommunications, the local rally has had a decidedly risk-on feel, with strong performances posted by mining and banking stocks. The materials sector was the strongest, up 1 per cent for the day, while financials gained 0.4 per cent.
"It's become evident that the price of iron ore has become quite resilient," Aurora Funds Management senior portfolio manager Andrew Ward said.
Iron ore for delivery to Qingdao, China, was last buying $US55.68 a tonne.
The more resilient the price, the more favourable the valuations of the majors including Rio Tinto, BHP Billiton and Fortescue looked, he said. While the commodity price was supporting the miners for now, Mr Ward was among those sceptical of the sustainability of its stability.
The big four banks have enjoyed support following the declaration of victory in the federal election by Liberal leader Malcolm Turnbull on Sunday, Mr Ward said.
"As well as a little more certainty post-Brexit in the world, the fact is [the banks] look reasonably compelling when compared with bond rates," he said.
The expectation of further central bank easing has ramped up in recent days, particularly following the re-election of Shinzo Abe as Prime Minister in Japan.
The Bank of England meets on Thursday to determine whether it will cut interest rates after Britons voted to leave the European Union.