Australian stocks dip as miners lose ground amid trade tensions

Australian shares fell slightly on Monday, as losses in mining and gold stocks outweighed gains in financials, while Bapcor slumped to a decade-low after the auto parts retailer forecast weaker earnings for the first half of the year.

The S&P/ASX 200 index fell 0.2% to 8,980.10 by 0000 GMT.

The benchmark closed 0.8% lower on Friday.

Index heavyweight miners slipped 2.1% after a five-day winning streak.

Iron ore prices fell last week as concerns around demand outlook grew due to mounting US-China trade tensions, as well as prospects of rising ore supply.

China accused the US of stoking panic over its rare earth controls last week, while rejecting a White House call to roll back the curbs.

Mining giants BHP, Rio Tinto and Fortescue fell 1.5%, 0.9% and 0.9%, respectively.

BHP and Fortescue are scheduled to release their first-quarter production reports on Tuesday and Thursday, respectively. Gold stocks dived 4.8% after a five-session rally. Bullion prices fell sharply on Friday, pressured by a firmer dollar and US President Donald Trump’s comment that a “full-scale” tariff on China would be unsustainable.

Evolution Mining lost 5.4%, while Northern Star Resources dipped 3.9%.

Among individual stocks, Bapcor dropped 14.5% and was among the worst performers on the benchmark, after the firm projected lower earnings for the first six months of fiscal 2026.

Banks, on the other hand, rose 0.3% after an unexpected spike in unemployment bolstered chances of an interest rate cut next month.

Banks typically benefit from lower interest rates, which can translate to higher lending volumes for them.

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

The country’s annual inflation accelerated in the third quarter, coming in at 3.0%.

This was in line with analysts’ forecasts and at the top end of the central bank’s target range.