News: XEJ Australian shares end higher as Ukraine crisis boosts commodity prices

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Australian shares closed higher after a volatile session of trading on Wednesday, with mining and energy stocks leading the gains as the worsening Russia-Ukraine crisis boosted commodity prices.

The S&P/ASX 200 index (xjo) closed 0.3% higher at 7,116.7, extending gains to fourth session, also helped by data showing the Australian economy jumped 3.4% in the fourth quarter from the third, when it slid 1.9%. That topped market forecasts of 3.0% growth.

"Commodities are broadly favoured in this environment as the impacts from the conflict are piling on top of already inflationary pressures broadly and within the commodity space," strategists at RBC said in a note.

"There remains the potential for lingering impacts if fears about hits to global growth are realised."

Energy stocks .AXEJ soared 4.9%, hitting their highest in nearly two years and leading the gains on the benchmark after oil prices surged to seven-year highs as supply disruption fears mounted following hefty sanctions on Russian banks.

Sector majors Woodside Petroleum (WPL) and Stantos (STO) both jumped more than 6%.

Miners .AXMM advanced 3.4% after steel futures in China, the world's biggest producer of the material, climbed to the highest in more than two weeks on hopes that the Russia-Ukraine conflict will boost demand for Chinese steel overseas.

Iron ore behemoths BHP Group (BHP) and Rio Tinto (RIO) gained 3.8% and 4.6%, respectively.

Gold stocks .AXGD gained 1.9%, with Evolution Mining (EVN) up 3.2%, while Newcrest Mining (NCM) rose 1.1%.

In New Zealand, the benchmark S&P/NZX 50 index (nz50) closed 0.9% lower at 12,088.75.