News: XEJ Australian shares extend gains on mining, energy boost

March 3 (Reuters) - Australian shares rose for a fifth session on Thursday, driven by mining and energy stocks on the back of strong commodity prices, and as global markets rebounded after the U.S. Federal Reserve chairman assuaged worries about aggressive rate hikes.

The S&P/ASX 200 index (xjo) had climbed 0.7% to 7,166.60 by 2333 GMT, up 2.5% since a 3% drop on Feb. 24.

Wall Street rebounded overnight to end sharply higher after Fed Chairman Jerome Powell signalled the central bank would likely raise interest rates less than some investors had feared.

In Australia, energy stocks .AXEJ led the gains, climbing 3.1% after crude prices surged beyond $110 a barrel on Wednesday as Western sanctions hampered Russia's exporting capabilities.

Sector majors Woodside Petroleum (WPL) and Santos Ltd (STO) advanced 4.3% and 3.5%, respectively.

Miners .AXMM rose 2.2% on the back of strong commodity prices.

Heavyweight BHP Group (BHP) climbed 3%, while Rio Tinto (RIO) rose 2.8%.

Among other sectors, gold stocks .AXGD lost 0.4%, while financials .AXFJ gained 0.2%.

In other news, coal explorer Stanmore Resources (SMR) said it would raise about A$694 million ($506.06 million) to fund the acquisition of an 80% stake in BHP Mitsui Coal, a joint venture in Queensland, from global miner BHP Group. Stanmore shares were on a trading halt.

New Zealand's benchmark S&P/NZX 50 index (nz50) climbed 1.3% to 12,243.90.

($1 = 1.3710 Australian dollars)