Australian shares gained 0.6 percent on Monday to reach a five-week high, as investors bet on the Reserve Bank of Australia cutting official interest rates to bolster the flagging economy. The benchmark S&P/ASX 200 index advanced 25.5 points to 4,531.5, the highest closing level since October 23. The benchmark rose 2.1 percent last week.

Among the top retailers, department store Myer Holdings closed down 1.8 percent and smaller rival David Jones lost 2.0 percent. New Zealand's benchmark NZX 50 index slipped 1 point to 4,049.1.

Copyright Reuters, 2012