Corrects closing levels throughout
Miners hit lowest since early May as iron ore dips
Gold stocks fall on profit taking - analyst
Fed decision due later in the day
By Adwitiya Srivastava
June 18 (Reuters) - Australian shares edged lower on Wednesday as losses in mining and gold stocks offset energy and technology gains, while investors remained cautious due to the ongoing Israel-Iran conflict.
The S&P/ASX 200 index fell 0.1% to close at 8,531.2 points. The benchmark fell 0.1% on Tuesday.
Nerves frayed across global markets as the Israel-Iran war stretched into day six, with Trump's for Iran's surrender and a thinning thread of U.S. patience stoking fears of a broader conflict.
On the Sydney bourse, heavyweight miners weighed on the benchmark with a 1.6% decline to hit their lowest level since May 2, as iron ore prices fell on slowing demand in top consumer China and a stronger dollar.
The world's largest listed miner, BHP Group fell 1.2%, while Rio Tinto and Fortescue shed 1.1% and 4%, respectively.
Gold stocks dropped 2.3%, although bullion prices were flat.
Henry Jennings, senior analyst and portfolio manager at Marcustoday, said investors are locking in recent gains by taking profits in gold stocks.
Providing an upward push, energy stocks ascended 0.7% as oil prices climbed on worries that the Iran-Israel conflict could disrupt supplies.
Financial stocks inched 0.1% higher, led by a 0.6% gain in the country's biggest lender, Commonwealth Bank of Australia .
Grady Wulff, a market analyst at Bell Direct, said banking stocks are rising, likely due to their safe-haven appeal following geopolitical uncertainty.
Technology stocks added 1.1%, despite Wall Street peers falling overnight.
Since domestic technology stocks have not done well recently, dip buying is taking place in the sub-index, Jennings added.
New Zealand's benchmark S&P/NZX 50 index closed 0.1% lower at 12,627.32 points.
Global investors are also looking out for the Federal Reserve's monetary policy decision due later in the day. Expectations are for the central bank to stand pat on rates.
(Reporting by Adwitiya Srivastava in Bengaluru; Editing by Tasim Zahid)
((Adwitiya.Srivastava@thomsonreuters.com [Adwitiya.Srivastava@thomsonreuters.com]))
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