Australian shares fall as renewed US-Iran fire puts ceasefire in doubt

Westpac Banking

08/05/2026 02:36

May 8 (Reuters) - Australian shares slipped on Friday, driven by losses in financials and miners, as investors exited equities after the United States and Iran exchanged fire, casting doubt upon the Middle East ceasefire and dampening risk appetite.

The S&P/ASX 200 index .AXJO fell 1% to 8,788.40 by 0025 GMT. The benchmark rose 1% on Thursday.

The main index is set to finish the week with a slight 0.5% rise, as investor optimism has ticked up over the last two sessions amid possible negotiations for a U.S.-Iran peace deal. That, however, did not sustain after renewed hostilities overnight.

Crude futures surged as much as 3% on the news, highlighting inflationary pressures fuelled by the spike in oil prices.

Banking stocks .AXFJ fell 1.3%, and were set to close the week little changed. Westpac WBC.AX was the top drag on the sub-index as it traded ex-dividend. The remaining "Big Four" banks also traded in the red.

Macquarie MQG.AX bucked the sub-index's trend to touch its peak after the country's top investment bank booked its highest yearly profit in three years, boosted by earnings from its commodities arm that benefited from market volatility due to the Middle East conflict.

The resources sub-index .AXMM also dragged the benchmark, with BHP BHP.AX, Rio Tinto RIO.AX and Fortescue FMG.AX declining 1.6%, 1.2%, and 1.8%, respectively. The sector, however, is on pace to end with a 4.4% weekly gain and is set to snap two straight weeks of losses.

Among gold miners, Northern Star Resources NST.AX and Evolution Mining EVN.AX lost 0.5% and 0.4%, respectively.

Healthcare stocks .AXHJ and the industrials sub-index .AXNJ added to benchmark declines, falling 0.8% and 0.7%, respectively.

Separately, property listings platform REA Group REA.AX rose as much as 3.8% to a three-month high after logging a 16% rise in third-quarter operating earnings and lowering its fiscal 2026 costs forecast.

In New Zealand, the S&P/NZX 50 index .NZ50 declined 0.9% to 13,145.45. The benchmark, however, is set to gain 1.3% for the week, extending gains for the second straight week.

(Reporting by Nikita Maria Jino in Bengaluru; Editing by Rashmi Aich)

((Nikita.Jino@thomsonreuters.com;))