(Updates to close) Australian shares closed higher on Tuesday,...

(Updates to close)

Australian shares closed higher on Tuesday, boosted by technology and banking stocks, at a time when the country's central banks held rates at a record low and the West cranked up sanctions against Russia over its invasion of Ukraine.

The S&P/ASX 200 index (xjo) ended 0.7% higher at 7,096.5, extending gains to a third straight session, and climbing in tandem with firmer moves on broader Asian markets.

The Reserve Bank of Australia kept its cash rate at a record low of 0.1% and cited the war in Ukraine as a major new source of uncertainty as it stressed patience on tightening policy

"The market is probably pricing in the move towards hikes as the geopolitical situation calms down", said Damian Rooney, director of equity sales at Argonaut, adding that investors are eyeing the Federal Reserve March meeting for a rake hike

Tech stocks .AXIJ jumped 5.7%, tracking peers on Wall Street, with Block Inc's Australian shares (SQ2) soaring 12.8%

The country's biggest lender Commonwealth Bank of Australia (CBA) jumped 1.5% after saying it will sell a 10% stake of China's Bank of Hangzhou 600926.SS for about A$1.8 billion ($1.30 billion), exiting a nearly two-decade-old investment amid market pressure

The other three of the "Big Four" banks advanced between 0.7% and 1.5%, lifting the financial sub-index .AXFJ 1.02% higher

The Western Australian government opening borders will, hopefully, ease supply chain issues that the country has been seeing since last year, Rooney said.

Among other individual shares, lithium and nickel miner IGO (IGO) added 6.7% after it discontinued negotiations with UK-based Glencore Plc GLEN.L to buy its CSA copper mine in New South Wales state.

In New Zealand, the benchmark S&P/NZX 50 index (nz50) closed 1.8% higher at 12,197.92. ($1 = 1.3797 Australian dollars)