Australian shares were nearly flat in early trade on Wednesday, as investors turned cautious amid escalating tensions in the Middle East, with the Iran-Israel conflict entering its sixth day.
The S&P/ASX 200 index edged down 0.1% to 8,530.60, as of 0032 GMT.
The benchmark ended 0.1% lower on Tuesday.
The continuing exchange of airstrikes between Iran and Israel kept investors on edge, with Reuters reporting that the US military was deploying more fighter aircraft to the conflicted region.
Back in Sydney, energy stocks rose 0.6%, tracking a more than 4% jump in oil prices on Tuesday as the escalating Israel-Iran conflict stoked fears of supply disruptions. Sector giant Woodside Energy rose 0.8% and smaller peer Santos gained 0.8%.
Export-reliant healthcare stocks jumped 0.5%, buoyed by a higher US dollar. Biotech giant CSL advanced 1.5%.
Among other sectors trading in green, IT stocks gained 1.2%, with WiseTech Global rising 1.6% and NEXTDC falling 1% after the latter inked a debt facility of A$2.2 billion ($1.43 billion).
Bucking the trend, heavyweight miners lost 1.1%, with the sub-index hitting its lowest level since May 9 as copper prices fell on the Middle East instability.
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Mining giant BHP Group fell 1.2% and iron ore miner Rio Tinto shed 0.5%.
Financials traded largely flat, with the country’s “Big Four” banks losing between 0.1% and 1%. Gold stocks lost 0.8%, as investors booked profits.
Gold miner Northern Star Resources fell 1.3%. In New Zealand, the benchmark S&P/NZX 50 index was largely unchanged at 12,639.95.
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