Aussie shares gain on boost from Sydney Airport, energy and materials stocks

Australian shares rose on Monday, boosted by airport operator Sydney Airport Holdings surging on an improved takeover bid and solid gains in the energy and materials stocks.

The S&P/ASX 200 index rose 0.25% to close at 7,425.2 after rising as much as 0.4% earlier, as financial stocks fell amid signs of higher inflation in the US financial markets. The benchmark ended 0.5% higher on Friday.

Sydney Airport Holdings advanced as much as 5.1% to its highest in over a year after bidder Sydney Aviation Alliance increased its offer price to A$8.75 from prior proposals at A$8.45 and A$8.25, to acquire all shares in the airport operator.