Australian Shares Slip Further as Peace Talks Break Down

The S&P/ASX 200 fell 44 points, or 0.5%, to close at 8,917 on Monday, extending losses from the prior session as U.S. stock futures tumbled as Washington is moving to impose a blockade on Iranian shipping after weekend peace talks collapsed. President Trump also warned that oil and gasoline prices could stay elevated through the November midterm elections, underscoring potential political risks from the conflict. Traders remained cautious ahead of China’s March trade data due Tuesday, a key gauge for Australia’s export outlook. Focus will also turn to domestic labor market figures later this week. Most sectors ended in the red, led by losses in consumer non-durables, commercial services, and process industries. Mining stocks were among the worst performers, including Regis Resources (-3.9%), Evolution Mining (-3.4%), and Ramelius Resources (-2.7%). In contrast, energy stocks advanced, lifted by higher oil prices, with Woodside Energy and Ampol each rising 2.6%, and Santos gaining 1.9%.

Australian shares dropped 54 points or 0.6% to 8,907 in early deals on Monday, marking losses for the second straight session amid a sharp retreat in U.S. stock futures as Washington prepared a blockade on Iranian port traffic after talks between the U.S. and Iran failed to produce an agreement to end the conflict in the Middle East. Caution also grew ahead of March labor market data in Australia after February's jobless rate unexpectedly rose and hit a three-month high. Focus is further set on China, Australia’s top trading partner, which will release March trade and activity figures along with Q1 GDP later this week. Nearly all sectors weakened, led by consumer non-durables, commercial services, transport, and manufacturing. Major laggards included Evolution Mining (-3.9%), Northern Star (-3.2%), Qantas (-2.5%), and Technology One (-2.3%). In contrast, energy stocks outperformed, with Woodside Energy up 3.4% and Santos gaining 2.2%.

The ASX 200 slipped 19 points, or 0.2%, to close at 8,954 on Friday, reversing gains from the prior three sessions as U.S. stock futures weakened and tensions in the Strait of Hormuz kept investors cautious ahead of Pakistan-mediated U.S.–Iran talks scheduled for Saturday. Concerns over rising costs also weighed, with Australia’s monthly inflation gauge hitting a record 1.3% in March, reflecting renewed price pressures since late 2025. In the main trading partner China, March inflation came in softer than expected, though producer prices rose for the first time in nearly three years. Sector losses were led by process industries, followed by consumer durables, logistics, and healthcare. Notable decliners included Evolution Mining (-2.7%), Wisetech Global (-2.6%), Transurban Group (-1.9%), and Fortescue (-1.3%). Despite Friday’s retreat, the local market booked its third straight weekly gain, up 4.4%, lifted by extended bargain hunting after the benchmark recently hit a four-month low.