Australian equities fell 52 points, or 0.6%, to 8,734 in early trade on Monday, extending losses for a fifth consecutive session and hovering near a two-week low. The decline tracked weakness in U.S. stock futures amid renewed diplomatic tensions between Washington and Tehran. Over the weekend, U.S. President Donald Trump cancelled plans to send American envoys to Islamabad, Pakistan, for talks with Iran, even as Iran’s foreign minister continued a tour of intermediary nations.
Sentiment was further restrained by caution ahead of March inflation figures due later this week. In February, Australia’s CPI rose 3.7% year-on-year, remaining above the Reserve Bank of Australia’s 2–3% target band and highlighting persistent price pressures since the second half of 2025.
Losses were broad-based across sectors, led by energy minerals, logistics, and healthcare, although gains in non-energy minerals helped limit the overall decline. Among notable laggards were Lynas Rare Earths Ltd. (-2.9%), Mineral Resources (-2.3%), and Yancoal Australia (-1.1%). The four major banks also weakened, shedding between 0.7% and 1.1% each.
