Australian shares fall as miners, energy stocks drag

Australian shares fell on Friday and were set for their biggest weekly drop in more than a month, with miners and energy stocks leading the decline, while hopes faded for a US-Iran peace deal.

The S&P/ASX 200 index fell 0.4% to 8,645.20 by 0016 GMT.

The benchmark has fallen more than 1% so far this week, on track for its worst week since end-April.

Risk sentiment soured after the Iran-backed Hezbollah militia rejected a new ceasefire in Lebanon on Thursday, dampening US President Donald Trump’s efforts to halt the Lebanon conflict and forge a broader peace deal with Iran.

In Sydney, commodity-linked stocks were the biggest drag, with miners falling 2.4%, dragged down by weaker iron prices.

The sub-index was on course for its worst week in more than a month.

Gold stocks tumbled 1.9% despite an overnight rise in bullion prices.

Gold miner Evolution Mining lost 2%.

In corporate news, Lynas Rare Earths late on Thursday named company veteran Pol Le Roux as its interim CEO from June 30. Shares of the firm fell nearly 1% on Friday.

Financials slipped 0.5%, with the “Big Four” banks losing about 1% each.

Energy stocks fell 1.1% after four consecutive sessions of gains, as oil prices settled around 3% lower overnight.

On the other hand, tech stocks rose 1.6% and were on track for their best week in nearly two months. Shares in Megaport rose as much as 27.4% to hit their highest in more than four years, as trading resumed after a halt.

On Wednesday, the company secured four new AI infrastructure contracts worth A$458.9 million ($326.87 million) and said it would raise A$827.3 million, to build an inference cloud to cash in on surging demand for AI-related facilities.

New Zealand’s benchmark S&P/NZX 50 index rose 0.3% to 13,137.76.