* Business investment rises 3% during December quarter
* Oil prices jump on U.S. production drop, dovish Fed stance
* Iron ore futures rise on demand rebound hopes (Updates to close)
By Soumyajit Saha
Feb 25 (Reuters) - Australian shares closed higher on Thursday, helped by gains in energy and mining stocks as commodity prices continued to strengthen, and as data showed a higher-than-expected rise in domestic business investment.
The S&P/ASX 200 index .AXJO closed 0.8% higher at 6,834.
Energy stocks .AXEJ rose 1.6% 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. O/R
Oil & gas explorers Woodside Petroleum WPL.AX and Santos Ltd STO.AX closed 2.7% and 3% higher, respectively.
Meanwhile, data showed domestic business investment rose by a larger-than-expected 3% during the December quarter, with firms ramping up spending on plant and machinery despite the coronavirus pandemic. .AXMM gained 1.7%, 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. IRONORE/ MET/L
Global miners BHP Group BHP.AX and Rio Tinto (LON:RIO) RIO.AX jumped 3.3% and 1.9%, respectively.
Financials .AXFJ gained 0.7%, with the so-called "big four" banks rising in the range of 0.5% and 1.3%.
Healthcare stocks .AXHJ also advanced, with heavyweight CSL Ltd CSL.AX rising 0.9%.
Gold stocks .AXGD fell 2.9% as bullion prices eased in the face of rising U.S. Treasury yields. GOL/
Afterpay APT.AX 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. Zealand's benchmark S&P/NZX 50 index .NZ50 fell 1.2%, as shares of diary producer a2 Milk ATM.NZ dropped 16% after it forecast full-year revenue at the lower end of its outlook range.