Australian shares dip as miners, banks drag; earnings season looms

Australian shares kicked off the month lower on Monday, weighed down by losses in banks and miners, while investors awaited corporate earnings for signs of how companies have navigated the fallout from the Iran war.

The S&P/ASX 200 index fell 0.3% to 8,948.70 by 1220 GMT. The benchmark gained 2.3% last week.

Japan’s Nikkei Share Average also fell 1.1%, while South Korea’s KOSPI, which has increasingly been setting the tone for global markets, was down 4.7% in early trade.

The decline came despite a sharp fall in oil prices after US President Donald Trump refrained from a fresh attack on Iran, defusing an escalation in the conflict last month that had driven oil prices to their biggest monthly gain since March.

In Sydney, miners lost 0.3%, dragged mainly by Fortescue’s more than 2% drop.

The miner’s shares extended Friday’s losses, when it had flagged a $525 million impairment for 2026, while also warning that China’s state iron ore buyer was undermining stable supply into the country.

Rio Tinto also slipped 0.4%, as a fall in Dalian iron ore futures on Friday weighed on the sector.

Gold producers fell 0.4%. Financials fell 0.3%, with all but ANZ from the “big four” banks in the red.

Commonwealth Bank of Australia led losses, down 0.6% Energy stocks lost 1.6%, tracking lower oil prices, while consumer discretionary and real estate stocks fell 0.4% and 0.6%, respectively.

Investors will pay close attention to corporate earnings this week, with results from AMP, Nick Scali, James Hardie and REA Group offering a read on how well companies have weathered the impact of the five-month-long Iran war.

Rising global oil prices have raised costs across sectors from transport to manufacturing and construction, while also driving the Australian central bank’s aggressive tightening cycle and weighing on property prices and consumer sentiment.

In New Zealand, the benchmark S&P/NZX 50 index rose 0.2% to 13,731.77.