News: XEJ Mining, energy stocks drive Australian shares to 2-month closing high

(Updates to close)

Australian shares rose to a two-month closing high on Tuesday, boosted by gains in heavyweight energy and mining stocks as reports that some European Union countries were considering imposing sanctions on Russian oil boosted commodity prices.

The S&P/ASX 200 index (xjo) ended 0.9% higher at 7,341.10, its highest close since Jan. 20, with all sectors but technology in positive territory.

However, Kunal Sawhney, the chief executive officer of Kalkine Group, said the share market was expected to remain volatile for quite some time.

"The chaotic price movements in commodities are expected to continue till a ceasefire between Russia and Ukraine emerges," he said.

Among sectors, mining .AXMM led the gains with a 3.8% jump. The mining triumvirate of BHP Group (BHP) , Rio Tinto (RIO) and Fortescue Metals (FMG) rose between 1.3% and 5.1%.

Energy stocks .AXEJ climbed 1.5% after oil prices extended gains on a potential ban on Russian oil and attacks on Saudi facilities. Woodside Petroleum (WPL) and Santos (STO) were up 1.3% and 1.8%, respectively.

Gold stocks .AXGD gained more than 2% as the war in Ukraine kept safe-haven demand for the metal intact.

Financials .AXFJ were up 0.6%, with the 'big four' banks gaining between 0.5% and 1.1%, after Fed Chairman Jerome Powell said the U.S. central bank must move "expeditiously" to raise rates.

Sawhney said this fuelled hopes for earlier interest rate hikes by the Australian central bank.

Among individual stocks, Boral (BLD) fell nearly 4% and was among the top losers on the benchmark, after the building materials maker said its earnings had been hit by recent rainfall in New South Wales and Queensland.

On the upside, coal miner New Hope Corp (NHC) rose 8% after posting half yearly profits from surging thermal coal prices, and announcing a four-fold jump in interim dividend payout.

New Zealand's benchmark S&P/NZX 50 index (nz50) ended 0.2% higher at 12,204.69.