Investors saw enough value in ASX stocks to lift the market despite uncertainty around how economic sanctions on Russia may affect global trade.
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The market on Wednesday gained 0.62 per cent even after western nations and Japan flagged sanctions against Russian banks after president Vladimir Putin ordered troops into Ukraine.
Russia is a major producer of oil and the price of Brent crude hovered at $US97.15 per barrel due to anticipated supply difficulties. It had traded at $US99 per barrel overnight.
CommSec senior economist Ryan Felsman said oil was not the only commodity that might be affected.
Russia is a big player in palladium, titanium, natural gas, platinum, wheat, nickel and aluminium, he said.
Mr Felsman said investors were worried a shortfall in supply of some commodities could disrupt car manufacturing and plane-building.
These fears were helping commodity prices rally, he said.
The ASX commodity share categories of energy and materials were each less than one per cent higher.
Technology fared best. It rose two per cent after dropping almost six per cent in the prior two days.
There were gains of one per cent for shares in consumer staples, healthcare and telecommunications.
The benchmark S&P/ASX200 index closed up 44.4 points, or 0.62 per cent, to 7205.7.
The index is 427 points below its record high in August, 7632.8 points.
The All Ordinaries index closed higher by 51.7 points, or 0.7 per cent, to 7473.9 points.
In Australia, annual wages grew to their highest level since mid-2019, but still behind the rate of inflation.
The Australian Bureau of Statistics wage price index rose 0.7 per cent in the December quarter, to an annual growth rate of 2.3 per cent.
Reserve Bank officials will take the data into account when they consider rate-setting on Tuesday.
On the ASX, some big names reported earnings in the final days of the season.
Woolworths reported lower first-half profit due to coronavirus-related costs while managing director Brad Banducci warned that it is inevitable food prices will rise.
The retail giant declared net profit after tax down six per cent to $795 million for the 27 weeks ended January 2.
Mr Banducci said inflation forced prices up about two to three per cent.
Woolworths shares traded up one per cent to $35.68.
After trading closed, mining giant Rio Tinto reported an improved full-year profit of $US21.09 billion and announced a special dividend.
Investors will receive a final dividend of $US4.17 per share and a special payout of 62 US cents per share.
Earlier, Rio had closed up one per cent to $119.87.
Meanwhile, the performance of the big banks was mixed. The Commonwealth Bank and Westpac rose less than one per cent. ANZ and NAB fell by the same measure.
In earnings news, Domino's Pizza suffered a first-half profit fall as the company directed proceeds from strong sales to long-term investments.
Net profit after tax excluding some significant charges fell five per cent to $91.3 million.
Shares in Domino's plunged 14 per cent to $86.13.
Westfield shopping centre owner Scentre Group returned to full-year profit thanks to property valuations.
Net profit after tax was $887.9 million, helped by revaluation gains of $81.2 million.
Investors will receive a higher distribution of 14.25 cents per share.
Scentre was down four per cent to $3.02.
Cargo software vendor WiseTech Global raised its full-year earnings forecast after a better than expected first-half result.
Sales and profit were higher as customers upgrade systems to cope with the explosion in online ordering since the COVID-19 pandemic.
Shareholders will receive a higher, fully franked interim dividend of 4.75 cents per share.
WiseTech Global was up four per cent to $44.58.
Companies due to report earnings on Thursday include Qantas, Brambles and Eagers Automotive.
The Australian dollar was buying 72.33 US cents at 1720 AEDT, higher than 72.01 US cents at Tuesday's close.
ON THE ASX
* The benchmark S&P/ASX200 index closed up 44.4 points, or 0.62 per cent, to 7205.7 on Wednesday.
* The All Ordinaries index closed higher by 51.7 points, or 0.7 per cent, to 7473.9 points.
* At 1720 AEDT, the SPI200 futures index was even at 7118 points.
CURRENCY SNAPSHOT
One Australian dollar buys:
* 72.33 US cents, from 72.01 cents on Tuesday
* 83.20 Japanese yen, from 82.66 yen
* 63.84 Euro cents, from 63.74 cents
* 53.20 British pence, from 52.99 pence
* 106.89 NZ cents, from 107.28 cents.