Australian shares closed lower Monday as President Donald Trump signaled openness to cutting tariffs but ruled out immediate talks with China.

The S&P/ASX 200 fell 0.97% or 80.2 points to close at 8,157.8.

President Donald Trump stated he may reduce tariffs on China, as current levies are so high they have effectively halted trade between the two nations, Bloomberg reported.

"Trade deal optimism is giving way to the reality of complex, slow-moving negotiations," said Charu Chanana, the chief investment strategist at Saxo Markets in Singapore.

On the domestic front, Australian job ads rose 0.5% month on month in April, following a 0.4% increase in March, according to a report from ANZ Research and Indeed.

Australian business activity rose further in April as new orders grew at their fastest rate in three years, according to a monthly survey by S&P Global.

In company news, Smartpay Holdings (ASX:SMP, NZE:SPY) signed an exclusivity agreement granting an unnamed buyer due diligence access until June 9. Shares of the company rose 22% in Australia and 18% in New Zealand at market close.

The shares of major energy firms plummeted on Monday as oil prices dropped after eight OPEC+ countries agreed to implement crude oil production hikes on Saturday.

The shares of Woodside Energy Group (ASX:WDS) fell 4% and Santos (ASX:STO) fell past 4% at market close.

Gold Road Resources (ASX:GOR) signed a scheme implementation deed with Gold Fields subsidiary Gruyere to acquire 100% of Gold Road's issued and outstanding share capital through a scheme of arrangement. Shares of the company rose 10% at market close.