SYDNEY: Australian shares ended higher on Monday on growing signs that Washington and Beijing were inching towards a trade deal, although gains were capped by losses in major bank stocks.

The S&P/ASX 200 index rose 0.3% or 17.8 points to 6,686.90 at the close of trade.

The United States and China both said on Friday that they had made progress in talks aimed at defusing their protracted trade war, while US officials said a deal could be reached this month. Trade-sensitive resources producers in Australia, which sell most of their goods to China, were the biggest boosts to the ASX 200 for the day.

The metals and mining index closed 2.2% higher, with heavyweights BHP Group and Rio Tinto adding 2.2% and 3.5% for the day, respectively.

Mining services provider NRW Holdings Ltd gained 13.3%, and was the best performer on the ASX 200.

New Zealand stocks ended higher on strength in healthcare and utility stocks, although the local listings of Australian banks weighed. The benchmark S&P/NZX 50 index rose 0.4% or 39.86 points to finish the session at 10,801.55.—Reuters