Australian shares rose on Monday's close as the country's manufacturing activity rose to its highest level in two years in February.

The S&P/ASX 200 Index rose 0.9% or 73.3 points to close at 8,245.7.

The S&P Global Australia Manufacturing Purchasing Manager's Index rose to 50.4 in February from 50.2 in January, its highest since February 2023, amid an upturn in new orders.

On the global front, the euro rose against the dollar following European leaders' efforts to strengthen support for Ukraine, Bloomberg reported.

Chinese investors face a key week with officials meeting to discuss economic priorities, hoping for stimulus to sustain the stock rally and offset US tariff risks, the report said.

In additional domestic news, Melbourne Institute's monthly inflation gauge declined in February, driven by price falls for recreation and culture, the applied economic and social research group said.

The ANZ-Indeed Australian job ads fell 1.4% month on month in February, following an upwardly revised 1.3% rise in the prior month, according to a report from ANZ Research.

In company news, NRW Holdings (ASX:NWH) reported Friday that its earnings per diluted share in the fiscal first half rose to AU$0.112 from AU$0.09 per diluted share a year earlier. Shares fell past 9% at market close

The Star Entertainment Group (ASX:SGR) said its shares were automatically suspended from trading, confirming that its financial report for the half year ended Dec. 31, 2024, was not lodged on Feb. 28 as required by the Australian bourse's listing rules.

Shares of Suncorp Group (ASX:SUN) fell past 2% and shares of Insurance Australia Group (ASX:IAG) fell nearly 1% at market close after Australia's meteorology bureau issued a warning that Tropical Cycle "Alfred" is expected to move towards the southeast Queensland coast from Tuesday.

The cyclone may cause property damage in the affected areas.