Miners weigh on Australian shares; intensifying US-Iran tensions keep risk sentiment at bay

Australian shares edged lower on Tuesday as weakness in commodity prices dragged miners, while risk appetite was subdued amid escalating tensions between the US and Iran.

The S&P/ASX 200 index lost 0.6%, down at 8,742.3 by 0008 GMT to mark a fourth consecutive session in the red.

The benchmark closed 0.1% lower in the previous session.

In a potential expansion to the Middle East conflict and a further threat to global energy supply chains, Yemen’s Iran-aligned Houthis said on Monday they would impose a naval blockade on Saudi Arabia.

On the Australian bourse, the mining sub-index fell as much as 0.7% to hover near its lowest level since early April, as iron ore prices lost ground due to seasonal weakness in Chinese steel demand. BHP and Rio Tinto were down 0.2% and 1.3%, respectively.

Gold stocks lost 0.2%, on track for a fifth session of losses.

Prices of the precious metal slipped as the intensifying Gulf conflict continued to cloud the views on US interest rates.

Financial fell as much as 1.1%, marking their lowest level in nearly a week.

All the ‘Big Four’ banks lost in the range of 0.3% to 1%.

Technology stocks recovered from two straight sessions of losses, rising 1.1% and on track for their best day in two weeks.

Data center operator NEXTDC, telecom firm Superloop and IT services firm Data#3 added between 1.8% and 3.8% to feature among the top ten gainers on the benchmark.

Energy stock added 0.6% as oil prices settled higher amid concerns of a disrupted supply chain.

Woodside Energy rose 1.1% while Santos was down 0.4%.

New Zealand’s benchmark S&P/NZX 50 index was flat at 13,700.4 points.

The country’s annual inflation accelerated in the second quarter, hotter-than-expected and above the central bank’s target range, official data showed on Tuesday.