Australian shares posted marginal gains on Tuesday, supported by energy stocks and miners, though the upside was limited as consumer discretionary firms came under pressure due to US-China trade tensions and domestic political uncertainty.
The S&P/ASX 200 index held its ground, up 0.2% at 7,766.80 points by 1232 GMT.
Miners advanced as much as 0.7% to their highest point in nearly two weeks, extending gains to a fourth consecutive session on robust iron ore and metal prices.
Shares of industry heavyweights Rio Tinto, BHP and Fortescue rose between 0.5% and 1.5%.
Energy stocks added more than 1% as oil prices edged higher on tariff exemptions, with Viva Energy and Santos leading the sub-index with gains of 3.4% and 2.1%, respectively.
Bucking the broader market trend, consumer discretionary firms were the biggest laggards, dropping as much as nearly 1% and snapping a two-day winning streak.
Leading the losses in the sub-index were Breville Group and Aristocrat Leisure, both falling 1.5%. Political uncertainty ahead of the May 3 election weighed on consumer stocks, with the possibility of a hung parliament despite Labor’s improving polls creating caution around sectors vulnerable to household spending shifts.
In company news, shares in Collins Foods slipped as much as 2.7% after the fast food chain operator announced plans to exit its underperforming Taco Bell business.
Investors remained cautious about US-China trade relations after US President Donald Trump exempted electronics and semiconductors from new duties.
Australia shares lean into correction territory as US tariff tensions loom
Beijing has struck back at Washington on every measure but said it won’t respond to further US tariff hikes.
Local traders await minutes of the Reserve Bank of Australia’s latest policy meeting, due around 0130 GMT, as well as the jobs data and New Zealand’s quarterly inflation figures on Thursday.
In New Zealand, the benchmark S&P/NZX 50 index fell 0.2% to 12,082.43 points.
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