Australian shares inch lower, hurt by banks and energy; miners limit losses

Australian shares edged lower on Monday, weighed down by banks, healthcare, and energy stocks, though gains in technology and miners cushioned the decline as investors remain wary amid efforts to reach a resolution to the Middle East conflict.

The S&P/ASX 200 index fell 0.3% to 8,703.9 by 0058 GMT.

The benchmark had risen 1.6% on Friday.

Risk appetite returned among market participants on Friday after Reuters reported that the US and Iran had reached an agreement to extend their ceasefire and lift restrictions on shipping through the Strait.

However, the positivity was short-lived as Israeli Prime Minister Benjamin Netanyahu ordered troops to move further into Lebanon in a battle against the Iranian-backed Hezbollah militant group, despite a ceasefire announced more than six weeks ago.

On the bourse, financials fell 0.7%, with three of the “Big Four” banks losing between 0.4% and 1%.

Energy stocks dropped 1%, its lowest since May 14, with Woodside Energy and Santos falling 1.4% and 1.1%, respectively. Coal exporter Yancoal Australia fell as much as 2.8%, and coal producer Whitehaven Coal dropped as much as 2.9% tracking weakness in coal prices.

Health stocks slipped 1.3% with ASX-listed shares of ResMed down as much as 7.8% Bucking the trend, Miners rose 0.7%, its highest point since mid-May, on the back of rising iron ore prices.

Heavyweights BHP Group and Rio Tinto rose around 1% each.

Gold stocks gained 1.4% after bullion rose more than 1% on Friday, with Evolution Mining rising as much as 2.5%.

Tech stocks rose as much as 4.8%, their highest since early February, as investors cheered Dell’s strong earnings.

Wisetech Global jumped as much as 6.1% and Xero surged as much as 8.3%. Meanwhile, New Zealand markets were closed due to a public holiday.