Australian shares rose to a two-month closing high on Tuesday, boosted by gains in heavyweight energy and mining stocks as reports that some European Union countries were considering imposing sanctions on Russian oil boosted commodity prices.

The S&P/ASX 200 index ended 0.9% higher at 7,341.10, its highest close since Jan. 20, with all sectors but technology in positive territory.

However, Kunal Sawhney, the chief executive officer of Kalkine Group, said the share market was expected to remain volatile for quite some time.

“The chaotic price movements in commodities are expected to continue till a ceasefire between Russia and Ukraine emerges,” he said.

Australian shares extend gains on mining, energy boost

Among sectors, mining led the gains with a 3.8% jump. The mining triumvirate of BHP Group, Rio Tinto and Fortescue Metals rose between 1.3% and 5.1%.

Energy stocks climbed 1.5% after oil prices extended gains on a potential ban on Russian oil and attacks on Saudi facilities. Woodside Petroleum and Santos were up 1.3% and 1.8%, respectively.

Gold stocks gained more than 2% as the war in Ukraine kept safe-haven demand for the metal intact.

Financials were up 0.6%, with the ‘big four’ banks gaining between 0.5% and 1.1%, after Fed Chairman Jerome Powell said the US central bank must move “expeditiously” to raise rates.

Sawhney said this fuelled hopes for earlier interest rate hikes by the Australian central bank.

Among individual stocks, Boral fell nearly 4% and was among the top losers on the benchmark, after the building materials maker said its earnings had been hit by recent rainfall in New South Wales and Queensland.

On the upside, coal miner New Hope Corp rose 8% after posting half yearly profits from surging thermal coal prices, and announcing a four-fold jump in interim dividend payout.

New Zealand’s benchmark S&P/NZX 50 index ended 0.2% higher at 12,204.69.