Australian stocks finished higher on Monday, touching a five-month high as banks surged and miners raced ahead on higher metal prices.

At the close of trade, the benchmark S&P/ASX200 Index lifted 73.4 points higher, or 1.6 per cent, at 4675.3, while the broader All Ordinaries Index gained 70.6 points, or 1.5 per cent, to 4722.1.

All sectors posted improvements except for telecommunications and gold. Financials added 1.9 per cent and materials put in 1.4 per cent.

The resources-heavy Australian bourse moved in tandem with Asian markets, which soared to their highest levels in more than two years, but it received an additional boost from copper hitting five-month highs and gold notching up a record $US1300 per ounce.

Markets were also buoyed by renewed optimism on the US economy, with Wall Street notching up a fourth straight week of gains.

The positive news sent the Aussie to fresh two-year high of 96.24 US cents this morning.

Among the major banks, ANZ Banking Group added 2.54 per cent to $24.20, Commonwealth Bank of Australia lifted 2 per cent to $52.56, National Australia Bank gained 1.76 per cent to $26 and Westpac Banking Corp put on 1.95 per cent to $23.95.

Investment Bank Macquarie Group climbed 2.61 per cent to $37.30

In the resources sector, Rio Tinto grabbed 2.05 per cent to $77.15, while BHP Billiton advanced 1.58 per cent to $39.66, above a six-week high.

Fortescue Metals Group firmed 1.78 per cent to $5.13.

Coal miner Macarthur Coal picked up 0.92 per cent to $11.97.

Gold miner Newcrest Mining gave up 0.55 per cent to $39.70, despite record gold prices.