Australian shares fell 82 points, or 1.0%, to 8,434 in early Monday trade, marking a third consecutive decline as risk appetite weakened. The drop followed softer U.S. futures, with the war involving Iran entering its fifth week and stoking fears of broader economic fallout, particularly through higher energy costs.
Caution also intensified ahead of key U.S. non-farm payrolls data due this week, alongside global manufacturing and services PMI releases. Economists expect the March readings to signal a slowdown, reflecting the drag from elevated energy prices tied to the conflict.
Adding to concerns, the OECD warned last week that Australia could experience one of the highest inflation rates among advanced economies. Local media reported that major transport players, including Uber and Qantas, are planning fare increases.
Losses were broad-based, led by consumer, industrial services, logistics, and financial stocks. Notable decliners included Wisetech Global (-5.5%), Xero Ltd (-4.7%), Mineral Resources (-2.9%), and Ramsay Health Care (-2.2%).
