Australian shares ended lower on Tuesday, with financial stocks and miners leading declines, as deepening tensions between Ukraine and Russia heightened market uncertainty.

The benchmark S&P/ASX 200 index closed 1% lower at 7,161.3 after hitting a two-week low earlier in the day. It gained 0.2% on Monday.

Russian President Vladimir Putin ordered the deployment of troops to two breakaway regions in eastern Ukraine after recognising them as independent, worsening a crisis that has roiled global markets for weeks.

Financial stocks were the biggest drag to the benchmark and closed 1.5% lower. The "Big Four" banks slid between 1% and 2.1%.

Australia shares set to track Wall Street lower, NZ dips

Miners retreated 1.1%, with heavyweights BHP Group and Rio Tinto declining 0.9% and 1.4%, respectively.

Technology stocks were also in the negative, falling 3.2% in the fourth straight day of losses. The subindex closed at its lowest level since July 2020.

Australia-listed shares of Block Inc slumped as much as 7.3% to a record low, while Xero Ltd and Wisetech Global dropped 3.1% and 4%, respectively.

"Technology stocks are overvalued, and investors look for companies that have strong cash flows and are not susceptible to trends," said Brad Smoling, managing director of Smoling Stockbroking, adding that tech stocks are the first to get dumped when uncertainty hits the market.

With most sectors caught in a sell-off, investors turned to safe-haven commodity stocks in a panic move, he said.

Domestic gold stocks advanced 1.9% after bullion prices hit a near nine-month high. Sector major Newcrest Mining gained 2.3%.

Oil prices jumped to a fresh seven-year high, driving domestic energy stocks 1.9% higher. Heavyweights Woodside Petroleum and Santos gained 3.8% and 3.2%, respectively.

New Zealand's benchmark S&P/NZX 50 index closed 0.3% lower at 12,114.63.