Australian shares slip on Mideast tensions

Australian shares edged lower on Monday as rising tensions in the Middle East pushed oil prices sharply higher and dampened risk sentiment across Asian markets. The S&P/ASX 200 index fell 0. 1% to 8, 801 points by 0020 GMT after losing 0. 4% last week. In the Middle East, friction between the United States and Iran escalated with an exchange of heavy missile and drone assaults, casting further doubt on the future of an interim U. S. -Iranian agreement signed last month. Oil prices climbed more than 3% and drove local energy stocks up as much as 1. 3% to their highest since June 18. Major energy producers Woodside Energy and Santos gained more than 0. 6% each. Technology stocks weighed on the benchmark, falling as much as 1. 7% to their lowest since July 3, with Xero and WiseTech Global down 3. 1% and 1. 4%, respectively. The utilities sub-index dropped as much as 2. 5%, its biggest fall in nearly two weeks. Sector majors Origin Energy and AGL Energy fell 1. 6% and 3. 8%, respectively. Gold miners lost 1. 5%, tracking weaker bullion prices on concerns that interest rates will stay higher for longer to combat inflationary pressures. Evolution Mining and Northern Star Resources fell 1. 8% and 2. 6%, respectively. Heavyweight miners traded largely flat on weaker aluminium prices, with South32 down 1%. Major miners BHP and Rio Tinto advanced 0. 5% and 1. 1%, respectively, ahead of their quarterly production results later this week. Financials rose as much as 0. 4% to a more than two-month high, with Commonwealth Bank of Australia and ANZ Group gaining 0. 3%. Healthcare stocks slid 0. 1%, while the consumer staples sub-index fell 1. 4%. Among individual stocks, Genesis Minerals jumped more than 3% after rival suitor Regis Resources abandoned its buyout bid for Vault Minerals. New Zealand’s benchmark S&P/NZX 50 index fell 0. 3% to 13, 742. 52 points.

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