The Australian stock market has closed higher on a day when trade was dominated by the public float of Queensland freight railways, QR National. The benchmark S&P/ASX200 index closed up 14.3 points, or 0.31 per cent, at 4,643.5, while the broader All Ordinaries index rose 14.1 points, or 0.3 per cent, to 4,731.8.

On the ASX 24, the December share price index futures contract was 11 points higher at 4,660 points, with 24,041 contracts traded. QR National was the highest traded share by volume and value, with 476.31 million shares changing hands for $1.243 billion. Shares in the rail and freight operator closed at $2.65, after opening at $2.54 a share.

Shares in the major banks were mixed, with Westpac gaining 10 cents to $21.72, while Commonwealth ended down eight cents at $48.73. National Australia Bank also ended the day in the red, down seven cents to $24.00, while ANZ lost one cent to $22.48.

The major miners performed well, with BHP gaining 27 cents, or 0.62 per cent, to $43.88 and Rio Tinto climbing 42 cents, or 0.5 per cent, to $84.72. Capital markets had feared the possibility of the Irish government defaulting on its sovereign debt.

In other news on Monday, Westfield Group will sell half its interest in the retail component of the property group's Stratford City centre in the UK for STG871.5 million. Shares in Westfield gained 33 cents, or 2.79 per cent, to $12.15.

Among the local retailers, Woolworths Ltd fell 42 cents, or 1.52 per cent, to $27.16 and Wesfarmers Ltd lost eight cents to $33.07.

Oil and gas explorers Beach Energy Ltd and Impress Energy Ltd say they will merge to accelerate the development of their assets in South Australia's Cooper Basin. Beach Energy gained 0.5 cents to 66.5 cents, while Impress was 1.1 cents higher, or 16.18 per cent, at 7.9 cents.

The spot price of gold in Sydney was $1,361.90 per ounce at, up $6.60 from Friday's local close of $1,355.30. Newcrest Mining shares fell 24 cents to $39.90. Market turnover was a total of 2.9 billion shares changing hands for $5.425 billion, with 551 shares up, 531 shares down and 389 unchanged.

The Australian dollar gained in Asia trade Monday, helped by the Irish government's agreement to a rescue package from European authorities and the International Monetary Fund.

Overall regional sentiment in Asia was boosted by Ireland finally applying for bailout money, although the terms and conditions of the rescue package have yet to be finalized. Concern over Ireland had escalated in recent weeks, weighing on risk sentiment broadly and serving to dull some of the Australian dollar's shine.

After rallying more than 20% since July to above parity with the U.S. dollar, the currency slid back to its lowest levels in a month last leek. So, even with the People's Bank of China saying Friday it will raise banks' reserve requirement ratio in a move aimed at reining in credit growth and rising inflation, the China focused Australian dollar still rallied.

The Australian dollar traded at $0.9927, up from $0.9857 late Friday. Against the Japanese yen, the currency traded at 82.80, from 82.265.