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CSL plunges to near-decade low after Trump rejects Iran

Australian shares dropped on Monday, as risk aversion grew after U.S. President Donald Trump rejected Iran’s response to an?outline of peace?. CSL also fell to a low not seen in over a decade, with the biotech company cutting its?outlook? and announcing $5 billion worth of?impairments.

As of 0031 GMT, the?S&P/ASX 200 was down 1% to 8,661.4 points. The benchmark index closed Friday 1.5% lower.

Investors' appetite for risk was drained by the escalating geopolitical uncertainties, as Middle East tensions revived demand for safe haven assets. This weighed on equity markets.

On Sunday, President Trump rejected Iran's response on a U.S. peace proposal, destroying hopes for an imminent end to a 10-week conflict that has caused extensive damage in Iran and?Lebanon and paralyzed the maritime traffic in Strait of Hormuz.

CSL, an Australian company, fell by more than 20 percent to register its worst trading day. It also hit its lowest level since December 2016 after reducing its fiscal 2026 earning outlook and announcing $5 billion in non-cash losses over the next two year.

The health sub-index lost over 9% on Monday.

Financials fell 1.7% with "Big Four" banks falling between 0.6% to 2.6%.

The Reserve Bank of Australia announced its third consecutive rate hike of the year last week.

If current momentum continues, technology stocks will see a 1.3% drop and be 'on track' for their biggest intraday decline since April 28.

Oil prices rose on fears that the failed peace plan could cause global supplies to be tighter for longer.

Woodside, a sub-index heavyweight, added 0.9% and Santos gained 0.6%.

The mining subindex also gained 0.8%, with the top players Rio Tinto and BHP each gaining 1,1% and 1,2%.

The benchmark S&P/NZX 50 Index in New Zealand fell by 0.7% or 93.1 points to 13,082.1.

(source: Reuters)