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 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.
Australian shares rise after Ukraine sell-off, tech stocks shine
Tech stocks jumped 5.7%, tracking peers on Wall Street, with Block Inc's Australian shares soaring 12.8%.
The country's biggest lender Commonwealth Bank of Australia jumped 1.5% after saying it will sell a 10% stake of China's Bank of Hangzhou 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 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 added 6.7% after it discontinued negotiations with UK-based Glencore Plc to buy its CSA copper mine in New South Wales state.
In New Zealand, the benchmark S&P/NZX 50 index closed 1.8% higher at 12,197.92.
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