Iron ore prices surge stirs Australian shares

Australians shares have started the week on a high, as iron ore prices hit an almost eight-year record.

By 1:00pm local time in Australia, the benchmark ASX 200 had risen by 0.5 percent at 6,664 points, ABC News Australia reports.

In context, the market has surged by more than 12 percent in the past five weeks, driven by coronavirus vaccine optimism. It closed last Friday on a high for the fifth week in a row.

The All Ordinaries was also trading 0.5 percent higher at 6,901.

Iron ore prices continued to surge (+5.8 percent) above US$145 a ton, driven by strong demand from China and supply concerns fuelled by disappointing forecasts by Brazilian miner Vale SA.

Prices for one of Australia's biggest exports are now at the highest level since March 2013.