Australian shares edge higher as staples, discretionary stocks counter tepid miners

Atlantic Union Bankshares Corporation

Atlantic Union Bankshares Corporation

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- Australian shares edged higher on Wednesday, as strong performances in consumer staples and discretionary stocks partly offset weakness in gold miners, while investors remained cautious after fresh U.S. strikes on Iran.

The S&P/ASX 200 index .AXJO was up 0.3% at 8,626.50, as of 0030 GMT. The benchmark closed 0.2% lower on Tuesday.

Overnight, tensions between Washington and Tehran escalated after the U.S. launched fresh strikes on Iran, with U.S. President Donald Trump accusing Tehran of downing a U.S. Apache helicopter in the Strait of Hormuz, further weakening an already fragile ceasefire.

"Markets were largely unphased by President Trump's vows to 'respond to this attack'," Westpac analysts wrote in a note.

Consumer discretionary stocks .AXDJ led gains on the benchmark, rising as much as 2.2% to a three-month high, while consumer staples .AXSJ advanced 1.9% to their highest levels since April 30.

Banks .AXFJ added 0.7%, with shares of insurers AUB Group AUB.AX and QBE Insurance QBE.AX up 7.6% and 1.6%, respectively.

Gold stocks .AXGD capped gains on the benchmark, sliding up to 3% for a fourth session as bullion prices weakened on renewed Middle East tensions and interest rate worries. GOL/

Shares of gold miners Evolution Mining EVN.AX and Northern Star Resources NST.AX both shed more than 1.5%.

The mining sub-index .AXMM edged 0.1% lower on weak commodity prices, with Rio Tinto RIO.AX and Fortescue FMG.AX down 0.5% and 0.2%, respectively. IRONORE/ MET/L

Energy stocks .AXEJ lost 0.4%, with shares of oil and gas firm Woodside Energy WDS.AX down nearly 1%.

In company news, Sigma Healthcare SIG.AX slid more than 5% to its lowest level since April 30. The pharmaceutical wholesaler and retailer confirmed it is in preliminary discussions regarding a potential acquisition of British pharmacy chain Boots.

In New Zealand, the benchmark S&P/NZX 50 index .NZ50 fell 0.6% at 13,128.70.