Australian shares fall on Mideast anxiety, banks and healthcare stocks top losers

Australian shares fell on Tuesday, dragged down by financials and healthcare stocks, as uncertainty over the status of US-Iran ceasefire talks and potential reopening of the Strait of Hormuz soured appetite for risk assets.

The S&P/ASX 200 index fell 0.9% to 8,647.40 by 0104 GMT after closing flat on Monday.

US President Donald Trump said on Monday talks with Iran were ongoing, while Tasnim news agency reported that Tehran had suspended indirect negotiations with Washington and might end a ceasefire that has largely held since early April, citing the war in Lebanon.

Meanwhile, Lebanon announced a partial ceasefire between Hezbollah and Israel in what would amount to a limited de-escalation of the conflict.

In Sydney, financials fell as much as 2.1% to hit their lowest since mid-May, with the “Big Four” banks shedding between 1% and 2%.

Healthcare stocks slipped as much as 1.5% to touch their lowest since May 12, with biotech major CSL falling nearly 2%.

Miners gained as much as 0.9% on the back of higher copper and aluminium prices.

Heavyweights BHP Group and Rio Tinto rose 1% each.

Energy stocks climbed 0.6% as oil prices held on to most of the previous session’s sharp gains.

Woodside Energy rose 1.7%.

Technology stocks surged as much as 4.3% to touch their highest level since early February, in tandem with a rally in their US peers.

WiseTech Global and Xero both gained over 5%.

Among individual stocks, Northern Star Resources jumped more than 10% and was set for its best day since January 2020 after Elliott Investment Management disclosed an over A$1 billion ($714.60 million) stake in the firm.

Across the Tasman sea, the benchmark S&P/NZX 50 index fell 0.9% to 13,130.30.