ENCOURAGING signs for the housing sector have driven a rise in banking shares, which pushed the market to a fifth straight day of gains.
The release of China's latest economic growth figure of 7.5 per cent - in line with expectations - also helped the major resources stocks improve from early lows.
"The financial space saw good buying, probably helped by another solid auction clearance rate in Sydney over the weekend," IG chief market strategist Chris Weston said.
"Housing seems in a good space right now, especially after May home loan values have hit their highest level since 2009."
Markets are also tipping a rate cut by the Reserve Bank of Australia in August, which would further boost the housing market, and China's economic data did nothing to change that view, Mr Weston said.
