THE share market closed higher, boosted by some positive commentary from Australia's central bank and a lift in the Shanghai bourse.
Major mining stocks led the gains on the local bourse.
At the 4.15pm (AEST) close, the benchmark S&P/ASX200 index was up 45.3 points, or 1.04 per cent, at 4403.6 points, while the broader All Ordinaries gained 46 points, or 1.05 per cent, to 4418.7 points.
On the Sydney Futures Exchange, the September share price index futures contract had risen 55 points to 4383 points, with 29,441 contracts traded.
The minutes of the Reserve Bank of Australia's July 6 board meeting, said that an August interest rate rise was likely if official inflation data next week was higher than expected.
However, the central bank expects underlying inflation to have fallen even though the headline rate may be higher.
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The RBA said the underlying measure of inflation would fall to be below three per cent - and into its preferred target zone - for the first time in three years.
RBS Morgans private client adviser Trent Muller said the RBA minutes certainly helped the local market in terms of painting a fairly positive picture on the domestic front, but still outlining some concerns associated with Europe.
"Also the Chinese market rallied for quite a bit this afternoon,'' Mr Muller said.
"So we got some leverage there on speculation that the Chinese government is not going to have to tighten monetary policy, moving forward, which is certainly beneficial for the resources companies.
"As a result, you've got (global miners) BHP Billiton and Rio Tinto leading the leverage in the market today.''
Shares in BHP Billiton rose 55 cents to $38.30, and Rio Tinto lifted $1.47 to $66.50.
Mr Muller said the mood of investors was fairly subdued, given the recent share market volatility.
"Particularly, with the US (companies) reporting season, it's very difficult to know where we're going to go on a day-to-day basis,'' he said.
"Our reporting season effectively starts in August, so with debt concerns in Europe, most investors are sitting on their hands.''
On Wall Street on Monday, the Dow Jones Industrial Average index lifted 0.56 per cent to 10,154.43 points.
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