The S&P/ASX 200 index closed 0.8 per cent higher at 6,834.
Energy stocks rose 1.6 per cent as oil prices soared to a 13-month high, helped by expectations for continued accommodative monetary policies and lower crude production in the United States.
Oil & gas explorers Woodside Petroleum and Santos Ltd closed 2.7 per cent and 3 per cent higher, respectively.
Meanwhile, data showed domestic business investment rose by a larger-than-expected 3 per cent during the December quarter, with firms ramping up spending on plant and machinery despite the coronavirus pandemic.
Miners gained 1.7 per cent, helped by a jump in iron ore futures on expectations for a rebound in global demand, and as copper prices soared after the U.S. Federal Reserve signalled continued supportive measures.
Global miners BHP Group and Rio Tinto jumped 3.3 per cent and 1.9 per cent, respectively.
Financials gained 0.7 per cent, with the so-called “big four” banks rising in the range of 0.5 per cent and 1.3 per cent.
Healthcare stocks also advanced, with heavyweight CSL Ltd rising 0.9 per cent.
Gold stocks fell 2.9 per cent as bullion prices eased in the face of rising U.S. Treasury yields.
Afterpay rose earlier in the day after the fintech company said it was exploring an additional stock listing abroad amid increased U.S. investor interest. Trading in shares of Afterpay was later halted.
New Zealand’s benchmark S&P/NZX 50 index fell 1.2 per cent, as shares of diary producer a2 Milk dropped 16 per cent after it forecast full-year revenue at the lower end of its outlook range.
