Oil and gold stocks surged on the ASX after warnings that major producer Russia may invade Ukraine within days.
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Oil prices moved towards their highest level in more than seven years on Monday and energy shares closed three per cent higher as the prospect of European and US sanctions against Russia became more likely.
A barrel of Brent crude last traded for $US92.51.
Russia has more than 100,000 troops massed near Ukraine but has described talk of invasion as hysteria.
Investors were vigilant. They kept the gold price close to its highest level since November. The precious metal last traded for $US1,853.37 an ounce.
Deep Data Analytics chief executive Mathan Somasundaram explained investors were using gold as a hedge against inflation.
Energy prices can be a major contributor to inflation, and so the energy and gold gains were linked.
"The oil price flows into everything," Mr Somasundaram said, "and just about anything Russia does will push up oil prices higher."
"So the buying of gold and energy today is all a play on rising energy prices and inflation."
Inflation has been a constant worry for investors in the pandemic recovery. Last week, a 40-year record for US annual inflation had investors fearing hefty rate rises.
In ASX trade, participants were less active in other categories as they keep watch on Europe.
Healthcare shares had the steepest fall of one per cent.
The benchmark S&P/ASX200 index closed up 26.6 points, or 0.37 per cent, to 7243.9 points.
The All Ordinaries index closed higher by 19.3 points, or 0.26 per cent, to 7535.1 points.
Among energy stocks, Beach was one of those to thrive most. It rose nine per cent to $1.62, helped by a higher first-half profit.
The larger Santos gained four per cent to $7.72.
Among the gold miners, Evolution rose seven per cent to $3.96. Northern Star climbed five per cent to $9.00.
In other news, gaming giant Crown Resorts has sealed terms for a takeover by private equity group Blackstone.
Under the proposal, Blackstone will buy all listed shares for $13.10 cash each, valuing the Melbourne-based group at $8.9 billion.
Crown was up two per cent to $12.64.
Earnings season continued and JB Hi-Fi delighted investors with a quarter of a billion dollar share buyback.
First-half profit fell more than nine per cent however this was due to lockdowns and roaring sales in the previous comparable period.
JB Hi-Fi was up five per cent to $51.71.
Bendigo Bank was the latest bank to please investors this earnings season and reported first-half cash earnings up 18 per cent.
However Bendigo said lower second-half revenue was expected and it will need to cut costs.
Bendigo was up four per cent to $9.67.
The big banks were all higher. Westpac was best and rose four per cent to $23.88.
Boral's first-half earnings were down 10 per cent due in part to construction lockdowns and higher energy costs.
The building materials group said stronger second-half earnings were expected by raising its prices and there being fewer coronavirus stoppages.
Boral was down one per cent to $3.72.
Property group Irongate has given suitor Charter Hall six weeks' exclusivity to assess the financials of its target.
Charter Hall will try and progress its $1.2 billion indicative proposal from January to a binding offer.
The Charter Hall partnership which includes a Dutch pension fund have offered $1.90 per security.
Irongate was up less than one per cent to $1.85.
Charter Hall was down one per cent to $15.65.
In mining, the big players were all lower. BHP fared worst prior to reporting earnings on Tuesday and shed one per cent to $48.33.
The Australian dollar was buying 71.21 US cents at 1730 AEDT, higher than 71.20 US cents at Friday's close.
ON THE ASX
* The benchmark S&P/ASX200 index closed up 26.6 points, or 0.37 per cent, to 7243.9 points on Monday.
* The All Ordinaries index closed higher by 19.3 points, or 0.26 per cent, to 7535.1 points.
* At 1730 AEDT, the SPI200 futures index was lower by 13 points, or 0.18 per cent, at 7134 points.
CURRENCY SNAPSHOT
One Australian dollar buys:
* 71.21 US cents, from 71.20 cents on Friday
* 82.18 Japanese yen, from 82.64 yen
* 62.76 Euro cents, from 62.53 cents
* 52.58 British pence, from 52.61 pence
* 107.44 NZ cents, from 107.30 cents.
Australian Associated Press