Global Markets: Australia shares log worst week in nearly a month with US-Iran talks stuck in limbo

Australian shares logged their worst weekly performance in nearly a month on Friday, as escalating tensions between the U.S. and Iran dampened hopes for an imminent peace deal.

The S&P/ASX 200 index ended down 0.7% ‌at 8,625.10, its ⁠lowest ⁠since May 28.

The benchmark has declined 1.2% for the week, its biggest slide since May 11, capping a week of conflicting headlines from the Middle East that left traders on edge.


The Iran-backed Hezbollah militia rejected a new ceasefire in Lebanon while Israel said it would not withdraw troops from the country, undermining U.S. President Donald Trump's efforts to halt fighting and forge peace with Tehran.

Australian ⁠investor sentiment ‌is uneasy heading into the weekend, with traders booking profits and reconsidering risks from high oil prices and geopolitical tensions, KCM Trade chief market ⁠analyst Tim Waterer said.

Oil prices were little changed on Friday, but were set for weekly gains amid concerns of a prolonged energy shock.

"The 9,000 (level) would be a stretch on the ASX200, which would equate to a 4.3% increase from current levels. The banks would most likely have to drive such a move, which is unlikely given the weak economic backdrop," said Craig Sidney, senior investment adviser at Shaw and ‌Partners.

Financials lost 0.9% and logged their second week in the red. Top lender Commonwealth Bank of Australia shed 1.7% on Friday.

The resources sub-index declined 2.5%, tracking weak iron ore ⁠and copper prices. BHP and Rio Tinto slipped 2.5% and 1.9%, respectively.

The sector marked its steepest weekly drop since April 20.

Among gold miners, Northern Star Resources and Evolution Mining fell 2.5% and 3.1%, respectively.

Healthcare stocks and the consumer staples were among the outliers on the benchmark, finishing up 3.5% and 1.1%, respectively.

New Zealand's S&P/NZX 50 index ended up 0.5% at 13,161.97. The benchmark, however, posted a 0.6% loss for the holiday-truncated week, following two straight weekly gains.