Australian shares end mostly flat over tariff worries
The S&P/ASX 200 benchmark index closed 0.1% higher at 8,704.60 points, after losing 0.6% earlier in the session.
The benchmark rose 0.4% on Monday.
Australia, one of the countries currently subject to the U.S.'s 10% baseline tariffs, could face levies of between 15% and 20% on its exports to the U.S. if it doesn't secure a separate deal soon, erasing the optimism that came with a slew of deals announced recently.
'Questions remain about just how well or otherwise the (Australian) economy will handle stiffer tariffs,' said Tim Waterer, chief market analyst at KCM Trade.
Banks boost Aussie shares higher; investors brace for corporate earnings
Tariff levels are still going to be higher than they have historically been, and that poses a greater economic challenge to countries such as Australia, along with certain sector-specific tariffs which are less than ideal for the domestic export sector, Waterer said.
Banks, the bellwethers for economic growth, ended largely flat, with two of the 'Big Four' lenders finishing lower. Top lender CBA slipped 0.4%, after it announced workforce reductions tied to a shift towards artificial intelligence.
Miners finished largely unchanged, down 0.04%. BHP closed slightly higher, while Rio Tinto was flat and Fortescue slipped 0.3%.
Energy stocks rose 0.7%, with Woodside gaining 1.6% to hit a six-week high after it said it would take over as the operator of the Bass Strait oil and gas assets from ExxonMobil, unlocking an estimated $60 million in synergies.
Market participants now await the local inflation data due on Wednesday to gauge the central bank's next monetary policy move.
In New Zealand, the benchmark S&P/NZX 50 index rose 0.2% to 12,936.41 points.
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