The benchmark S&P/ASX200 index on Monday finished 37 points higher at 8,347.4, a gain of 0.45 per cent, while the broader All Ordinaries rose 37 points, or 0.43 per cent, to 8,594.4.
Capital.com analyst Kyle Rodda said a phone call on Friday between Mr Trump and Chinese President Xi Jinping - where the two world leaders reportedly discussed TikTok, trade and Taiwan - had reignited bullishness in equities.
"Ultimately, it's nothing more than a sugar hit to the markets and, as we learned during the first Trump term, the mood can change and back flips can happen very quickly," Mr Rodda wrote.
"If nothing else, the development helps frame the narrative for markets from here and make clear the signals traders and investors ought to be looking for."
Eight of the ASX's 11 sectors finished higher on Monday, with industrials and telecommunications basically flat and energy 0.6 per cent lower as Brent crude slipped to $US80.70 a barrel, from a six-month high of over $US82 last week.
The tech sector was the biggest mover, rising 1.1 per cent as Life360 lifted 4.6 per cent and Iress jumped 6.2 per cent on the sale of its superannuation business for up to $60 million to Apex Group.
Iress said while it continued to see opportunities within its wealth business to deliver software to superannuation funds, it wasn't the natural owner of a regulated superannuation services provider.
Star Entertainment Group was the biggest loser in the ASX200, with its shares falling 17.9 per cent to 11.5 cents after the troubled casino company warned there was "material uncertainty as to the group's ability to continue as a going concern", given its precarious finances.
In the heavyweight mining sector, BHP rose 0.5 per cent to $40.24 and Rio Tinto advanced 1.1 per cent to $120.09, while Fortescue dipped 0.3 per cent to $19.16.
Goldminers were lower as the precious metal traded for $US2,694 an ounce after climbing as high as $US2,720 last week.
Northern Star dropped 2.6 per cent, Evolution fell 1.1 per cent and Vault Minerals slid 4.1 per cent.
Ioneer fared better, jumping 20.6 per cent to a month-and-a-half high of 20.5 cents after the lithium-boron producer received a US$996 million ($A1.6 billion) loan from the US Department of Energy to develop a lithium processing facility in Nevada.
All of the big four banks finished higher, with NAB and CBA both rising 0.8 per cent, to $38.08 and $155.06 respectively, and Westpac and ANZ each rising 0.4 per cent, to $32.29 and $29.57.
The Australian dollar was buying 62.06 US cents, from 62.00 US cents at close of business Friday.
In cryptocurrency, Mr Trump and his wife Melania had stirred a frenzy on social media after they launched memecoins on the Solana blockchain.
The Official Trump coin had soared more than 60 per cent in 24 hours to become the 16th most popular cryptocurrency, with a notional total value of $US12 billion.
ON THE ASX:
* The benchmark S&P/ASX200 index on Monday gained 37 points, or 0.45 per cent, to 8,347.4
* The broader All Ordinaries rose 37 points, or 0.43 per cent, at 8,594.4.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 62.06 US cents, from 62.00 at close of business Friday
* 96.82 Japanese yen, from 96.48 yen
* 60.24 euro cents, from 60.26 euro cents
* 50.83 British pence, from 50.78 pence
* 110.75 NZ cents, from 110.94 NZ cents
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