Australian shares jumped almost two per cent on Monday with the  All Ordinaries Index up 1.91 per cent to 5414.1 and the S&P/ASX 200 index rising 1.94 per cent to 5442.

In Asia the Hang Seng index rose 1.28 per cent to 23,412.4 while Japan’s Nikkei fell 0.08 per cent to 17,606.8.

The Aussie dollar rose 0.26 per cent to US81.64c after losing ground in foreign markets over the weekend.

It still remains below Friday’s US81.74 close leaving those choosing an offshore holiday this summer facing a jump in out of pocket expenses.

The currency has lost 14 per cent  in the last eight  months, falling from US94.22 in April and putting up the cost of an overseas holiday up dramatically.

However the Reserve Bank is still talking the dollar down with bank governor Glenn Stevens calling for a value of US75c.

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Gains in commodity prices and oil prices along with weekend rises in foreign markets were responsible for the rise in Australian shares.

Financial, industrial and resource listings all gained with Telstra up 2.04  per cent to $6.00, BHP Billiton up 2.97 per cent to $29.84 and ANZ up 1.74  per cent to $32.09.

A standout was Resolute Mining up  9 per cent to 25c.

With AAP