At the 4.15pm (AEST) official market close, the benchmark S&P/ASX 200 index was 39.1 points, or 0.77 per cent, higher to 5142.4, while the broader All Ordinaries index had lifted 41.3 points, or 0.8 per cent, to 5221.

The gains followed a turnaround in trans-Atlantic markets overnight, with Wall Street and the UK’s FTSE100 lifting strongly and for the first time since Britain’s vote on Friday to exit the European Union. The switch in sentiment was driven by the possibility the UK may pursue the ‘Norway Option’ post-Brexit, where it retains full access to the European single market but has no say in EU politics.

Wall Street jumped nearly 2 per cent and commodity prices lifted, with US crude oil prices up 3.3 per cent and the TSI spot iron ore ticking 0.4 per cent higher.

“Traders are focusing on a more positive side and they pounce on the opportunities which have arisen from the recent sell-off and try to bag some bargains,” Think Forex chief analyst Naeem Aslam said.

“They are simply refusing to listen to the music being forced upon them.”

Property stocks were the sole weight on the market today on news of a second consecutive monthly decline in new home sales. The Housing Industry Association reported a 4.4 per cent slump in seasonally adjusted sales in May, on the back of a similar 4.7 per cent decline in April.

At the close, GPT Group had lost 2.56 per cent to $5.32, Stockland was down 2.73 per cent to $4.64 and Dexus Property eased 2.17 per cent to $9.02.

But banks lifted amid the improved sentiment, which was being echoed across the region. ANZ rose 1.33 per cent to $23.60, CBA lifted 0.49 per cent to $73.46, NAB added 0.45 per cent to $24.74 and Westpac improved 0.98 per cent to $28.80. The financial sector closed 0.6 per cent higher despite the property-stocks weight.

The big miners were also stronger on the commodity price rises, with BHP Billiton jumping 1.5 per cent to $18.30 and Rio Tinto up 1.43 per cent to $44.83.

The supermarkets also saw gains, Woolworths adding 0.44 per cent to $20.72 and Wesfarmers 0.71 per cent stronger at $39.61.

The energy space was 1.5 per cent higher with Woodside Petroleum lifting 1.24 per cent at $26.10.

Among the major movers, Qantas jumped 6.13 per cent to $2.77 to snap a recent losing streak while Caltex Australia gained 3.14 per cent to $31.87 as it said first-half profits would emerge largely in line with last year’s record result.

Beyond the property stocks on the negative side of the ledger, yield names Sydney Airport and Transurban were down after recent good runs — off 1.72 per cent to $6.87 and 2.35 per cent to $11.694 respectively.

The Australian dollar spent another day around the US74c mark.

Looking ahead, the financial year concludes tomorrow with the Australian Bureau of Statistics to release an update on job vacancies while the Reserve Bank has May figures on private sector credit.