Australia shares drop as fears escalate over Mideast conflict
Australian shares fell to a two-week low across all sectors on Thursday, as investors worried about reports of gunfire in the Strait of Hormuz, and faded hopes of a peace agreement.
By 0031 GMT the?S&P/ASX 200 index had fallen 0.3% to 8,816.30, its lowest level in over eight months. The benchmark fell 1.2% on Tuesday.
Top-weighted financials fell 0.9% and are on course for their ninth consecutive session of losses. Two of the largest banks, Westpac and National Australia Bank, have both reported operational impact this month as a result of war-driven volatility in the market.
ANZ and Westpac, the two largest lenders in Australia, both lost 1%. Westpac and NAB both dropped by 1.1% and 0.8%, respectively.
Heavyweight miners BHP & Rio Tinto, who gained 0.8% and 0.6% respectively, limited the overall losses. Both producers announced higher quarterly output of iron ore earlier this week.
Rio and BHP helped to boost the mining subindex by 0.4%. However, gold stocks limited gains.
Energy stocks gained 2.2%, ending a six-day loss streak. Oil prices rose by $3 or more after reports of gunfire attacks in the Strait of Hormuz and a surprise draw of gasoline and distillate stocks in the U.S. Santos shares jumped?as high as 4% following the release of sequentially higher quarterly sales and production revenue by the major oil-and-gas producer. Karoon Energy, a smaller producer, gained 4.4%. Ampol, Australia's largest fuel retailer, surged up to 3.6% after submitting a?final?remedy? offer to the competition regulator.
The benchmark S&P/NZX 50 Index in New Zealand fell by 0.4% to 12,900.
(source: Reuters)
