Australian shares closed higher on Monday, supported by gains in energy and mining stocks as rising expectations that the Omicron coronavirus variant"s impact on global economic growth will be limited buoyed commodity prices. The S&P/ASX 200 index (.AXJO) rose 0.35% to close at 7,379.3 points, rebounding from a 0.4% drop on Friday. A flurry of deal updates and earnings upgrades also helped lift market sentiment at the start of a week dominated by global central bank policy meetings. "The market is trading in thin volumes today, with commodity stocks dominating the theme, mainly as investors continue to shrug off Omicron concerns," Brad Smoling, managing director at Smoling Stockbroking said. "Market movement today is just a continuation of the relief rally we saw last week, it"s across the board." Property investor Charter Hall (CHC.AX) jumped 3.1% to a record high and was among the biggest gainers on the benchmark after raising earnings forecast for the second time in two months. Energy stocks (.AXEJ) rose 1.68% as oil prices extended their rally on bets the Omicron variant will likely have a limited impact on global fuel demand. Heavyweights Beach Energy (BPT.AX) and Worley (WOR.AX) led gains on the sub-index, adding 3.4% and 2.7​%, respectively. Major miners (.AXMM) rose 1.89% as Chinese iron ore futures bounced back on positive demand outlook. Rio Tinto (RIO.AX), BHP Group (BHP.AX) and Fortescue (FMG.AX) gained between 2.6% and 3.1%. Australian billionaire Andrew Forrest"s Wyloo Metals trumped its offer for Canadian nickel producer Noront Resources (NOT.V), shortly after failing to come to an agreement to support a rival bid by BHP Group. read more Insurers were among the worst performers on the local bourse after a brokerage downgraded Insurance Australia Group (IAG.AX) to "sell". The stock slid 3.6% to a nine-year low. Rivals QBE Insurance Group (QBE.AX) and Suncorp (SUN.AX) lost 3.3% and 1.1%, respectively. New Zealand"s benchmark S&P/NZX 50 index (.NZ50) rose 1.1% to finish the session at 12994.2 points. Reporting by Riya Sharma in Bengaluru; Editing by Sriraj Kalluvila Our Standards: The Thomson Reuters Trust Principles.