ASX climbs 2.2pc to 11-week high, buoyed by travel stocks

The Australian sharemarket closed at an 11-week high on Monday as local shares extended their rebound from March's market rout with the economy slowly returning to normal.

The S&P/ASX 200 Index ended the first session of the week 118.6 points, or 2.2 per cent, higher at 5615.6, its best close since March 11.

Simmering tensions between the US and China were largely pushed aside on Monday, with investors focused on signs the global economy was beginning to emerge from its COVID-induced slump with more stimulus potentially still forthcoming.

Economists are expecting early signs of recovery to emerge from the US this week, with economic indicators forecast to show a rebound in May's data.

"Regional US manufacturing surveys are all expected to show improving May confidence, potentially flagging a further rebound in the national purchasing manager indices down the track, albeit April core durable capex orders on Thursday night are expected to be weak, potentially down 20 per cent," said Scott Haslem, chief investment officer at Crestone Wealth Management.

Optimism on the local market was broad-based, with blue chip stocks across the board pushing the market higher.

CSL rose 2.5 per cent to $298.27, Macquarie Group advanced 3.5 per cent to $106.17, BHP Group climbed 1.3 per cent to $34.76, Telstra firmed 2 per cent to $3.12 and Wesfarmers rose 1.7 per cent higher at $39.50.

Travel and tourism stocks were among the best performers after Treasurer Josh Frydenberg told ABC News Breakfast further support for the tourism sector was possible after being quizzed about the $60 billion JobKeeper costing blunder.

"When it comes to JobKeeper, we’ll be conducting a review in the month of June," the Treasurer said. "And obviously we’ll look at how it’s being implemented, we’ll look at what’s happening in various sectors and ... the tourism sector could be one sector that’s going to be in need of further support."

Webjet shares advanced 15.6 per cent to $4.16, Flight Centre climbed 15.2 per cent to $13.01 and Qantas rose 7.2 per cent to $3.86.

The banks were also broadly firmer. NAB rose 2.7 per cent to $15.75, ANZ advanced 2.4 per cent to $15.59, Westpac firmed 2.1 per cent to $15.33 while Commonwealth Bank closed just 0.5 per cent higher at $58.99.

QBE Insurance climbed 6 per cent to $8.18 after telling investors its reinsurance contracts would limit its exposure to business interruption insurance claims by UK customers to $US75 million ($115 million).

Afterpay shares shot 9 per cent higher to $48.50 after the company confirmed interim chairman Elana Rubin would become chairman of the board immediately and US-based Yelp director Sharon Rothstein would become a non-executive director on June 1.

Ramsay Health Care rose 3.5 per cent to $69.00, after successfully completing its $300 million share purchase plan, saying valid applications of $695 million had been received from more than 50 per cent of its eligible shareholder base.

Toll roads operators also climbed with Macquarie saying evidence suggested toll road traffic volumes were recovering well ahead of public transport volumes. Transurban rose 3.4 per cent to $14.64and Atlas Arteria firmed 6.1 per cent to $6.91.

Mining stocks were among the worst hit stocks, with increased tensions between the US and China weighing on sentiment for base metals.

Alumina slid 1.3 per cent to $1.47, South32 declined 0.5 per cent to $1.89, IGO fell 1.4 per cent to $4.92, Perenti Global lost 2.1 per cent to $1.16 and Lynas Corp dropped 0.9 per cent to $2.10.