Australia shares fall as worries over Mideast conflict escalate

Australian shares dropped to a more than two-week low on Thursday, across most sectors, as markets worried about reports of gunfire attacks in the Strait of Hormuz and dwindling hopes of a peace deal. The S&P/ASX 200 index fell 0. 3% to 8, 816. 30 by 0031 GMT, its lowest level since April 8. The benchmark dropped 1. 2% on Wednesday. Top weighted financials lagged 0. 9%, on track for a ninth-straight session of losses. The downbeat mood towards the sector comes as two of the four largest lenders – Westpac and National Australia Bank had flagged operational impacts this month due to war-driven market volatility. No. 1 valued lender Commonwealth Bank of Australia shed 1%, while ANZ lost 1. 3%. Westpac and NAB dropped 1. 1% and 0. 8%, respectively. Overall losses were limited by heavyweight miners BHP and Rio Tinto, which gained 0. 6% and 0. 8%, respectively. Both producers reported higher quarterly iron ore output earlier this week. Rio and BHP helped the mining sub-index rise 0. 4%, although gains were limited by gold stocks. Energy stocks rose 2. 2% and broke a six-day losing streak. Oil prices settled up by more than $3 after a surprise gasoline and distillate stock draw in the U. S. and reports of gunfire attacks in the Strait of Hormuz. Shares of Santos surged as much as 4% after the major oil and gas producer reported sequentially higher quarterly production and sales revenue. Smaller producer Karoon Energy gained 4. 4%. Meanwhile, top fuel retailer Ampol surged as much as 3. 6% to a one-week high after submitting a final remedy offer to Australia’s competition regulator, as it looks to secure approval to acquire EG Australia for A$1. 1 billion($787. 60 million). New Zealand’s benchmark S&P/NZX 50 index fell 0. 4% to 12, 900.

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