Global Markets | Australian shares end largely unchanged as investors remain wary of Mideast risks

Australian shares closed a few pips higher in a subdued trading session on Monday, as investors waited for signs on whether the weeks-long Middle East conflict would ebb.

Hopes for a near-term resolution ‌to the conflict ⁠have withered ⁠after Iran rejected a second round of negotiations and blocked the Strait of Hormuz, and the U.S. seized an Iranian cargo ship, heightening concerns the ceasefire, that is set to end on Tuesday, may not hold.

"Weeks of war headlines, ceasefire hopes and sharp volatility have left investors cautious rather than inactive. This is a market waiting for clearer signals before committing," Hebe Chen, ⁠market analyst ‌at Vantage Markets, said.


Australia's benchmark S&P/ASX 200 index rose 0.1%, or 6.4, to end at 8,953.30 points.

The gauge has closed ⁠within 0.3 percentage points of this level for the past nine consecutive sessions, underscoring a lack of investor conviction.

A rally in gold miners and consumer firms kept the index afloat, while banks, iron ore miners, and energy stocks weighed.

Financials slipped marginally, with National Australia Bank slumping 3.6% after it flagged potential credit impairment charges of A$706 million ($505 million) as the Iran war roils the global economy and ‌financial markets.

Energy stocks fell 3% to a one-month low. Woodside Energy and Santos lost 3% and 1.3%, respectively.

Viva Energy shares tanked 9% as trading resumed after last ⁠week's fire at its Geelong refinery that affected capacity to produce petrol, diesel, and jet fuel, coming at a time Australia grapples with fuel supply crunch.

Selective pressure from the conflict is likely to build in sectors most exposed to higher energy costs, supply disruptions, or slower lending growth, Tim Waterer, chief market analyst at KCM Trade, said.

The New Zealand benchmark S&P/NZX 50 index rose 9.8 pips to 12,915.45.

($1 = 1.3980 Australian dollars)