(Updates to close)
SYDNEY, June 2 Australian shares rose 0.5 percent on Monday, buoyed by another record close on Wall Street, with strength in big name banking stocks helping offset losses among miners.
Karoon Gas Ltd rocketed 42.7 percent to finish at A$3.51, its highest point since Jan. 30 after Australian energy giant Origin Energy Ltd said it will buy a 40 percent stake in Karoon's Poseidon Browse Basin assets for up to $800 million.
The S&P/ASX 200 index climbed 26 points to 5,518.5 at the close of trade. The benchmark lost 0.5 percent on Friday, but eked out a gain of 0.1 percent for May.
Elsewhere, UGL Ltd jumped 8.2 percent after receiving a confidential and conditional proposal from third parties to acquire its DTZ business.
New Zealand markets were closed for the Queen's Birthday holiday.
(Reporting by Thuy Ong; Editing by Anupama Dwivedi)