The S&P/ASX200 gained 14.5 points on Tuesday, up 0.17 per cent to 8,579.7, as the broader All Ordinaries rose 11.1 points, or 0.13 per cent, to 8,877.5.
Energy and raw materials stocks led five of 11 local sectors higher, while IT stocks dropped 1.6 per cent in a sell-off.
"There was a real standout in today's session, and that's largely because our mining and energy stocks have been tracking stronger commodity prices," CommSec market analyst Laura Besarati said.
"We saw oil prices gaining ground amid geopolitical risks to supply following drone attacks by Ukraine, we've seen gold touch a six-week high amid US rate cut bets ... and copper and silver both climbed to fresh peaks."
The 1.1 per cent boost to the energy sector came with Woodside and Santos shares lifting on the back of stronger crude prices as investors continued to weigh the conflict in Ukraine against recent supply glut concerns.
Coal miners also rallied with Yancoal and Whitehaven up three and two per cent respectively, while metallurgical coal producer Stanmore was the top-200's second-best performer with a nearly four per cent gain.
BHP and Rio Tinto led the materials sector 0.7 per cent higher, buoyed by iron ore futures as they spiked to four-week highs before settling just above $US107 a tonne.
Gold prices stalled near November's highs to trade at $US4,226 ($A6,450) an ounce, providing a backdrop for a mixed performance from ASX-listed miners.
Newmont and Northern Star each faded more than 0.3 per cent, while Evolution carved out a 0.9 per cent improvement.
Pantoro Gold was the top-200's weakest performer, tumbling 11.9 per cent to $4.75 after significant shareholder Tulla Resources sold 25.8 million shares to return capital to principals and fund other projects.
The heavyweight financials sector traded slightly better than flat, as NAB grinded 0.7 per cent higher, while CBA lifted 0.4 per cent to $152.24, as ANZ broke even and Westpac fell behind as it provided a sustainability update to shareholders.
Buy-now, pay-later providers came under selling pressure as the attorneys-general from seven US states launched an inquiry into the sector, dragging Zip more than ten per cent into the red.
Droneshield continued its downtrend and has dropped 17 per cent in five sessions as it struggles to win back shareholder trust after its leadership dumped $70 million in stock in November, tanking the defence stock's share price.
In company news, shares in KFC owner operator Collins foods slipped 3.5 per cent despite boosting revenue in the recent half and upgrading its profit target, which came alongside a $1.3 million provision top-up for further "potential" wage underpayments.
Embattled bourse operator ASX swung from a sell-off to a 1.4 per cent lift a day after an announcements outage locked scores of companies into trading halts.
The turnaround wiped some of Monday's 2.8 per cent loss and came despite a downgrade from research group Morningstar.
Cryptocurrency Bitcoin has found some support near the $US87,000 ($132,740) level, but remains under selling pressure in a steep downtrend after tanking more than 30 per cent since hitting an all time high above $126,000 in early October.
The Australian dollar is buying 65.53 US cents, up from 65.44 US cents at Monday's ASX close.
ON THE ASX:
* The S&P/ASX200 rose 14.5 points, or 0.17 per cent, to 8,579.7
* The broader All Ordinaries gained 11.1 points, or 0.13 per cent, to 8,877.5
CURRENCY SNAPSHOT:
One Australian dollar trades for:
* 65.53 US cents, from 65.41 US cents at 5pm on Monday
* 102.01 Japanese yen, from 101.79 Japanese yen
* 56.44 euro cents, from 56.40 euro cents
* 49.59 British pence, from 49.48 British pence
* 114.44 NZ cents, from 114.18 NZ cents
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