Australian shares drop as uncertainty over Mideast weighs; Suncorp surges

Australian shares slipped on Friday and were on track for their worst week in over a month due to uncertainty about a lasting peace deal in the Middle East, although insurer Suncorp bucked the broader trend after bagging a reinsurance cover.

The S&P/ASX 200 index dropped 0.2% to 8,775 by 0034 GMT. The benchmark was set to lose nearly 2% this week, if losses hold, and would be its worst week since March 16.

Lebanon and Israel extended their ceasefire for three weeks after a high-level meeting at the White House, although markets remain uncertain about a lasting peace deal.

Miners lost 0.6%. Lithium producer IGO slid 11.5%, after flagging lower annual production and higher cost forecasts for the Greenbushes lithium mine.

The project is 51% owned by its joint venture with Tianqi Lithium Corp, and is the highest-grade ore reserve of any hard-rock lithium mine globally.

Shares of no.3 miner Fortescue were up 0.1%, after posting a 5% jump in third-quarter iron ore shipments, although it narrowly missed estimates.

Gold stocks weighed further on the sub-index after falling 0.8%, as prices of the precious metal fell to a one-week low.

Shares of Evolution Mining dropped 1.3%, while Northern Star Resources was down 1.5%. Meanwhile, Suncorp soared 9.5%, after the insurer bagged reinsurance protection of up to A$2.4 billion ($1.71 billion) over five years, and projected a gross written premium growth of 3% for fiscal 2026.

Suncorp helped the financials sub-index remain steady, while gains were offset by top banks. Commonwealth Bank of Australia fell 0.4%, while Westpac was down 0.5%.

Energy stocks surged 0.5%, as producers gained on surging oil prices.

Oil and gas producer Santos surged 1.2%, while Woodside Energy gained 1.2%.

In New Zealand, the benchmark S&P/NZX 50 index was flat at 12,884.19.