Australian shares slip as NAB, JB Hi-Fi results weigh on market

Australian equities opened the week on a soft note, with the S&P/ASX 200 index slipping 0.3% to 9,084.10 by 0053 GMT. The benchmark had already lost 1.6% in the previous week, and Monday's decline was driven by a fresh batch of corporate earnings that failed to impress.

National Australia Bank (NAB) was the biggest drag, with its shares falling as much as 4.8% after the lender reported a 15% drop in third-quarter home loan applications compared with the second quarter. The broader banking sector declined 1%, with all of the 'Big Four' banks trading lower except Commonwealth Bank of Australia, which remained flat. NAB's results marked the end of the August reporting season for Australia's major banks, which have been under pressure from concerns that the removal of property-investment tax breaks could hurt earnings and credit growth.

Retailer JB Hi-Fi also weighed on sentiment, with its shares heading for their worst session since late March 2020. The electronics chain reported a 0.5% decline in total sales at its Australian business for the first month of fiscal 2027.

Offsetting some of the losses, mining stocks rose as much as 1.5% after iron ore prices gained on Friday. Gold stocks climbed 2.4%, with Evolution Mining and Northern Star Resources each advancing about 2%, as bullion prices were set for a weekly gain. Energy stocks also rallied, surging 1% after crude oil futures rose more than $1 a barrel on Friday.

Risk appetite remained fragile, however, as peace talks between the U.S. and Iran showed no signs of progress, and oil tanker traffic through the Strait of Hormuz stayed halted. In New Zealand, the S&P/NZX 50 index fell 0.1% to 13,837, with dairy producer a2 Milk plunging as much as 10.2% after reporting a 44% drop in full-year profit.