Australian shares inched lower on Monday, as weakness in healthcare and tech stocks overshadowed gains in gold and mining. The S&P/ASX 200 index slipped 0.1% to 8,571.9, continuing a cautious tone from the previous session.
Investor sentiment took a hit following fresh tariff threats from U.S. President Donald Trump, who proposed raising the baseline tariff on other nations to 15–20%, up from the current 10%. The president also warned of potential 30% duties on European and Mexican imports, beginning August 1. Australia currently faces a 10% baseline tariff on most exports to the U.S., placing further pressure on local industries.
Healthcare stocks led the decline, falling 0.4% after Trump signaled steep 200% tariffs on imported pharmaceuticals. He offered drugmakers a year to comply, leading to a 0.2% drop in healthcare giant CSL.
The information technology sector also retreated, down 0.1%, with notable names like NEXTDC and ASX-listed Block falling 0.1% and 4.4%, respectively.
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Meanwhile, mining stocks bucked the trend, rising 0.4% as iron ore prices climbed. Industry heavyweights BHP and Rio Tinto both gained 0.8%. Gold miners followed suit with a 1.7% jump, supported by rising bullion prices. Evolution Mining and Northern Star Resources rose 1.1% and 1.2%, respectively.
Energy stocks advanced 0.8%, mirroring oil price gains. Woodside Energy increased 0.7%, and Santos edged up 0.4%.
In corporate news, Abacus Storage King surged 5.1% after receiving a sweetened buyout offer valued at A$2.17 billion from a group including Ki Corporation and U.S.-listed Public Storage. However, diversified miner South32 slumped over 5%, citing impairments at its Mozal aluminium operations in Mozambique.
The market remains on edge as global trade tensions resurface, with sectoral volatility expected to persist amid geopolitical uncertainty.