Australian shares notched their best session in more than two months on Wednesday, as surging commodity prices propelled miners higher, while easing fears surrounding the Omicron coronavirus variant lifted banks and aided broader sentiment.

The S&P/ASX 200 index closed 1.3% higher at 7,405.4, recording their best session since Oct. 4. The benchmark settled 1% higher on Tuesday.

Miners rose 2.4% to scale a 12-week closing high, benefiting from a jump in iron ore prices as easing monetary policy in leading consumer China boosted demand for ferrous materials.

Global miner Rio Tinto rose 2.2% to hit its highest since Oct. 21, while shares of Fortescue Metals Group jumped 3.3%.

Financials climbed 0.9%, with the "Big Four" banks rising between 0.3% and 1%.

Shares in Australia also took their cue from a global relief rally on views that the Omicron variant will not cause major economic damage.

"I think we are seeing a combination of some short-covering and 'buying the dip' in Australia", said Brad Smoling, managing director of Smoling Stockbroking.

"That said, I still think volatility is going to be very high going into the end of the year," he added.

Domestic technology shares rose 2.2%, tracking a strong overnight session on Wall Street, while firmer oil prices helped energy stocks close at a two-week high.

Zip Co Ltd hit a two-week high and was the top percentage gainer in the ASX 200, a day after the buy-now-pay-later firm reported strong transaction volumes for November.

The Reserve Bank of Australia on Tuesday left its cash rate at a record low, and stuck with its bond-buying plans, but adjusted its policy statement to allow for a possible increase before 2023.

New Zealand's benchmark S&P/NZX 50 index closed 2.1% higher at 12,868.32, recording its best session since Jan. 5.

Consumer cyclicals and healthcare led gains on the bourse, while SKY Network Television's stock surged 14.6% to be the top gainer in the index.