Australian shares edge lower as banks and miners drag

By Reuters News

Sept 21 (Reuters) - Australian shares inched lower on Monday, led by heavyweight banks and miners, as risk appetite weakened after renewed tensions in the Middle East.

The S&P/ASX 200 index .AXJO ticked 0.3% lower to 8,705.40 by 0018 GMT. The benchmark ended flat on Friday, finishing the week with a 0.1% loss.

Iran and the U.S. exchanged fresh threats over the weekend, underscoring months of deadlock between the two countries and adding to investor concerns about regional tensions and oil supplies.

Oil prices eased on Monday, however, as hopes for a recovery in shipments from top exporter Saudi Arabia offset news of a Houthi attack on Riyadh. O/R

Mining stocks .AXMM slipped 0.5% after a 1.9% jump in the previous session. BHP BHP.AX, Rio Tinto RIO.AX and Fortescue FMG.AX declined between 0.5% and 0.7%.

Among gold miners .AXGD, Northern Star Resources NST.AX and Evolution Mining EVN.AX were down 0.7% and 0.2%, respectively.

Bullion prices eased as the Middle East tensions added to inflation concerns and reinforced expectations that interest rates would stay higher for longer worldwide. GOL/

Financials .AXFJ slipped for a second straight session, falling 0.3%. Three of the "Big Four" banks traded in negative territory, while ANZ Group ANZ.AX was little changed.

Technology stocks .AXIJ fell 0.6%. Accounting software firm Xero XRO.AX slipped 1.4%, while logistics software maker WiseTech Global WTC.AX declined 1%.

Healthcare stocks .AXHJ were little changed, with a 2.7% rise in Cochlear COH.AX largely offset by a 4.7% loss in Telix Pharmaceuticals TLX.AX.

Telix agreed to buy Germany-based ITM Isotope Technologies Munich SE for about $1.65 billion, further boosting its radiopharmaceutical ambitions.

Among individual stocks, Perpetual PPT.AX was the worst performer on the benchmark, falling as much as 15.8% in its weakest trade since November 2022 after the asset manager rebuffed EQT AB's EQTAB.ST latest buyout bid.

In New Zealand, the benchmark S&P/NZX 50 index .NZ50 edged up 0.1% to 13,756.44.

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