Australia: Shares end higher as Ukraine crisis boosts commodity prices

[BENGALURU] Australian shares closed higher after a volatile session of trading on Wednesday (Mar 2), with mining and energy stocks leading the gains as the worsening Russia-Ukraine crisis boosted commodity prices.

The S&P/ASX 200 index closed 0.3 per cent higher at 7,116.7, extending gains to fourth session, also helped by data showing the Australian economy jumped 3.4 per cent in the fourth quarter from the third, when it slid 1.9 per cent. That topped market forecasts of 3 per cent 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 soared 4.9 per cent, hitting their highest in nearly 2 years and leading the gains on the benchmark after oil prices surged to 7-year highs as supply disruption fears mounted following hefty sanctions on Russian banks.

Sector majors Woodside Petroleum and Stantos both jumped more than 6 per cent.

Miners advanced 3.4 per cent after steel futures in China, the world's biggest producer of the material, climbed to the highest in more than 2 weeks on hopes that the Russia-Ukraine conflict will boost demand for Chinese steel overseas.

Iron ore behemoths BHP Group and Rio Tinto gained 3.8 per cent and 4.6 per cent, respectively.

Gold stocks gained 1.9 per cent, with Evolution Mining up 3.2 per cent, while Newcrest Mining rose 1.1 per cent.

In New Zealand, the benchmark S&P/NZX 50 index closed 0.9 per cent lower at 12,088.75. REUTERS