The Australian sharemarket has gained more than 1 per cent to its highest level in five months as the local earnings season kicked off strongly and bank stocks climbed.

The benchmark S&P/ASX200 index rose 1.2 per cent to 9129 at 2.30pm Sydney time, after rising to as high as 9139.70 earlier, the highest since around March.

The broader All Ordinaries climbed more than 1 per cent.

The big four banks led the gains, with National Australia Bank up 2.4 per cent, Westpac and ANZ both rising 1.9 per cent, and Australia’s biggest bank, CBA, climbing 1.8 per cent.

The lenders are among the companies due to report earnings in the next week or so.

Tech stocks were the best performers, with WiseTech climbing 1.5 per cent, Xero adding 2.5 percent, and Life360 surging almost 6 per cent.

In corporate news, Qantas shares fell 0.4 per cent amid fears hundreds of jobs could be moved offshore after the national airline revealed it was in talks with digital technology and management consulting firm Accenture about outsourcing back office roles.

In the earnings results space, financial services provider Credit Corp’s shares slumped despite posting a 12 per cent rise in profits.

Earnings from the REITS were mixed — Centuria Office REIT dipped 1 per cent despite swinging back into the black, with the company posting a full-year profit of $55.2 million.

Meanwhile, Charter Hall Social Infrastructure REIT climbed more than 1 per cent after it delivered a 27.5 per cent rise in profit to $90.5 million.

The REIT’s fund manager, Travis Butcher, said: “The addition of high-quality social infrastructure properties during the year, being the Western Sydney University campus in Parramatta and the Sonic Healthcare pathology laboratory in Bowen Hills, enhances portfolio quality and income growth.”

Bendigo Bank shares rose 0.7 per cent after the bank announced that ex-HSBC UK executive Christopher Dean will join the bank as chief customer officer in September.

All but two of the 11 sectors in the sharemarket gained. Mining was a drag on the Australian stock index, with giant BHP dipping 0.5 per cent after the price of iron ore fell to an almost two-year low of $US93 ($A132.46) a tonne.

Energy stock Rio Tinto jumped 1 per cent. The company last week reported a 47 per cent jump in half-year profit.

A strong session overnight in Wall Street were bolstered by hopes that the US and Iran are getting closer to resolving the long-standing conflict after US President Donald Trump said negotiations between the two nations were again underway.

Iran and Oman are closing in on an agreement to reopen shipping traffic in the Strait of Hormuz, according to Iranian and American officials.

“Risk sentiment improved after President Trump called off planned attacks on Iran and said an outline agreement had been reached that included reopening the Strait of Hormuz,” said Westpac economist Pat Bustamante.

- with AAP