Australian shares rose on Tuesday, boosted by financial and tech stocks ahead of a central bank policy meeting, even as the West cranked up sanctions against Russia over its Ukraine invasion.

The S&P/ASX 200 index was up 1.2% at 7,133.9 by 2358 GMT after Monday's 0.7% rise, with most sectors trading in positive territory.

The Reserve Bank of Australia is expected to keep rates steady at its monthly policy meeting later in the day and likely indicate that a hike could come in the July-September quarter.

Shares of Commonwealth Bank of Australia climbed 1.7% after the country's biggest lender said it would sell a 10% stake of China's Bank of Hangzhou for about A$1.8 mln ($1.31 mln), exiting a nearly two-decade-old investment amid market pressure.

The other three "Big Four" banks gained between 0.9% and 1.7%, helping financials rise 1.9%.

Technology stocks advanced 4.4% and were the top percentage gainers on the benchmark, with Block Inc's Australian shares rising as much as 12.8%.

Energy stocks gained 1.5% as oil prices jumped on fears of severe disruptions to Russia's exports, while mining and healthcare stocks rose 0.6% and 0.8%, respectively.

Shares of IGO Ltd climbed as much as 10.4% and were on track for their best day in more than a year, after the miner said it discontinued negotiations with UK-based miner Glencore Plc to buy its CSA copper mine in New South Wales state.

Shares in Virtus Health jumped as much as 4% to their highest since October 2016 after the vitro fertilisation services provider received a sweetened buyout proposal from CapVest Partners.

Gold stocks were the only laggard, losing 2.9%.

New Zealand's benchmark S&P/NZX 50 index was up 1.5% at 12,151.51.