Australian shares fall as Mideast tensions deepen, miners and banks top losers

Australian shares fell more than 1% on Thursday, dragged down by index heavyweights miners and financials, as fresh hostilities in the Gulf soured appetite for risk assets.

The S&P/ASX 200 index declined 1.3% to 8,674.10 by 0050 GMT and was on track for its worst session in a week.

The benchmark closed 0.7% higher on Wednesday. Gulf hostilities flared again on Wednesday after Tehran struck Kuwait, damaging its airport and injuring dozens, while the US military carried out strikes near the Strait of Hormuz.

In Sydney, miners dropped as much as 2.1%, pressured by weaker metal and iron ore prices.

BHP Group and Rio Tinto were down 3.2% and 3.4%, respectively, and were set for their weakest session since mid-May after notching record highs in the previous session.

Gold stocks fell as much as 3.8%, tracking weaker bullion prices.

Gold miners Northern Star resources slipped 5.1% and Evolution Mining tumbled 3.5%. Financials declined as much as 1.2%, with the “Big Four” banks shedding between 0.9% and 1.3%.

Tech stocks fell up to 2.8% after the Nasdaq pulled back from a record high on Wednesday.

WiseTech Global tumbled as much as 5% and Xero shed up to 3.3%. Bucking the trend, energy stocks rose as much as 1.1% after a 2% surge in oil prices overnight.

Sector giants Woodside Energy and Santos climbed as much as 1.6% and 1.4%, respectively.

Healthcare stocks rose as much as 1.2%, with CSL gaining 1.8%. ResMed’s Australia-listed shares surged 2.3%.

Among individual stocks, Treasury Wine Estates rose as much as 12.6% and was the top gainer on the benchmark index, after the winemaker said it was reviewing its Americas operations.

Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index inched 0.2% lower to 13,087.34.