Australian shares finished marginally lower on Tuesday as investors assessed developments in the Middle East and digested a larger-than-expected increase in minimum and award wages.
The S&P/ASX 200 Index fell 5.0 points, or 0.1%, to close at 8,724.4, with six of the benchmark's 11 sectors finishing lower.
Market sentiment remained cautious as investors monitored ongoing efforts by the United States and Iran to reach a diplomatic resolution to the conflict in the Middle East.
Retailers and shopping centre operators also came under pressure after the Fair Work Commission delivered its 2026 Annual Wage Review decision, increasing modern award wages by 4.75% and lifting the National Minimum Wage by 6% from 1 July.
Real estate investment trusts were weaker, with Westfield shopping centre owner Scentre Group falling 3.2%, while Vicinity Centres declined 4.0%, Mirvac Group lost 2.4%, and Charter Hall Group eased 1%.
Woolworths and Coles declined 1.9% and 0.7%, respectively, while JB Hi-Fi fell 5.4%, and Domino's Pizza Enterprises dropped 5.9%.
Healthcare stocks were among the weakest performers, led by losses in 4DMedical, which tumbled 5.9% despite announcing a new clinical evidence program aimed at expanding its CT:VQ technology into the acute pulmonary embolism market.
The decline followed the company's announcement on Monday that it planned to scale its recently established European operations.
Broader weakness across the healthcare sector also weighed on the market, with CSL down 1.7%, Sonic Healthcare falling 2.8%, Ramsay Health Care retreating 0.8% and ResMed closing 2.1% lower.
Meanwhile, the Information Technology sector provided support to the broader market following strong gains among U.S. technology companies overnight.
Xero surged 7.5%, WiseTech Global added 7.9%, and TechnologyOne finished 3.3% higher, while Life360 surged 13.3%.
In the Materials sector, major miners delivered a mixed performance.
BHP rose 1.4% to a fresh record high, while Rio Tinto added 1.5%. Fortescue, however, slipped 0.8%.
Gold producer Northern Star Resources jumped 13.6% after activist hedge fund Elliott Management called for urgent changes at the company, citing concerns over “operational missteps, cost overruns and inconsistent strategic direction”.
Among individual companies, SRG Global was the best-performing stock on the ASX 200, surging 16.6% after securing A$1.85 billion worth of contracts across multiple industries and upgrading its FY26 EBITDA guidance.
DroneShield gained 3.6% after announcing a $24.9 million contract to supply counter-drone systems to the U.S. Department of War's Joint Interagency Task Force 401.
On the bond markets, Australian government bond yields moved lower. The 10-year yield fell 0.2% to 4.885%, while the two-year yield declined 0.7% to 4.115%.
