Australian shares closed higher at close on Monday, as technology and mining stocks bounced back.

The S&P/ASX 200 climbed up 1.85% or 161.30 points to close at 8,870.10.

Silver climbed 4.4% to $81.43 per ounce, while gold rose 1.1% at $5,017 per ounce after experiencing volatility in the previous week. S&P 500 futures gained 0.1% and the Nasdaq inched up 0.2%.

On the domestic front, Australia's seasonally adjusted household spending fell 0.4% to AU$78.86 billion in December 2025, following a 1% increase in the previous month, according to the Australian Bureau of Statistics. Six of the nine spending categories fell in December 2025, led by clothing and footwear, furnishings and household equipment, and health.

Total card purchases in Australia on domestic-issued cards fell 0.8% month-over-month to AU$96 billion in December 2025, following a 1.7% rise in the previous month, according to data from the Reserve Bank of Australia. New payment platform transactions rose 0.4% to AU$226.3 billion, following a 2.3% increase in November 2025.

In company news, Pepper Money (ASX:PPM) confirmed media reports that it received a confidential, non-binding, and conditional proposal from Challenger (ASX:CGF), in partnership with Pepper Group ANZ, to acquire all of its shares through a scheme of arrangement. The proposal would provide the company's shareholders, other than Pepper Group, with AU$2.60 per share after deducting any final or special dividends for 2025. The shares of Pepper Money were up over 27% at close, while those of Challenger fell past 3%.

CAR Group (ASX:CAR) reported Monday fiscal first-half adjusted earnings of AU$0.519 per share, up from AU$0.469 a year earlier. Revenue from continuing operations for the six months ended Dec. 31, 2025, was AU$625.8 million, compared with AU$579.4 million a year earlier. Its shares jumped nearly 10% at market close.

Lastly, Seek (ASX:SEK) will recognize a post-tax total impairment charge of AU$356 million related to its investment in Zhaopin in its financial results for the first half of fiscal 2026, subject to the auditor review process. Seek's stake in Zhaopin is expected to increase to around 30% from 23.5% upon completion of all elements of the simplification transaction, with no cash outflow required from the company. Its shares fell past 1% on market close, reaching the lowest point in over five years.