Australian shares fall on Mideast anxiety, banks and healthcare stocks top losers

- Australian shares fell on Tuesday, dragged down by financials and healthcare stocks, as uncertainty over the status of U.S.-Iran ceasefire talks and potential reopening of the Strait of Hormuz soured appetite for risk assets.

The S&P/ASX 200 index .AXJO fell 0.9% to 8,647.40 by 0104 GMT after closing flat on Monday.

U.S. President Donald Trump said on Monday talks with Iran were ongoing, while Tasnim news agency reported that Tehran had suspended indirect negotiations with Washington and might end a ceasefire that has largely held since early April, citing the war in Lebanon. MKTS/GLOB

Meanwhile, Lebanon announced a partial ceasefire between Hezbollah and Israel in what would amount to a limited de-escalation of the conflict.

In Sydney, financials .AXFJ fell as much as 2.1% to hit their lowest since mid-May, with the "Big Four" banks shedding between 1% and 2%.

Healthcare stocks .AXHJ slipped as much as 1.5% to touch their lowest since May 12, with biotech major CSL CSL.AX falling nearly 2%.

Miners .AXMM gained as much as 0.9% on the back of higher copper and aluminium prices. Heavyweights BHP Group BHP.AX and Rio Tinto RIO.AX rose 1% each. MET/L

Energy stocks .AXEJ climbed 0.6% as oil prices held on to most of the previous session's sharp gains. Woodside Energy WDS.AX rose 1.7%. O/R

Technology stocks .AXIJ surged as much as 4.3% to touch their highest level since early February, in tandem with a rally in their U.S. peers. WiseTech Global WTC.AX and Xero XRO.AX both gained over 5%. .N

Among individual stocks, Northern Star Resources NST.AX jumped more than 10% and was set for its best day since January 2020 after Elliott Investment Management disclosed an over A$1 billion ($714.60 million) stake in the firm.

Across the Tasman sea, the benchmark S&P/NZX 50 index .NZ50 fell 0.9% to 13,130.30.


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