Australia’s S&P/ASX 200 moved slightly higher on Monday, though early gains faded as trading progressed. The benchmark rose as much as 0.45% in early dealings before easing back to a gain of about 0.13% by mid-morning, reflecting a cautious tone across the market.
Support came from stronger oil prices, which climbed amid escalating tensions involving Iran. The rise in crude helped underpin the local market, with investors balancing the potential benefit for energy-linked shares against the broader uncertainty created by geopolitical risk.
At the same time, sentiment was pressured by a global selloff in semiconductor stocks. The weakness was linked to reaction around a Chinese AI model, which rattled chip shares internationally and added to concerns in technology-related areas of the market.
The mixed session left the ASX 200 caught between two competing forces: firmer commodity prices on one side and renewed pressure on growth and chip-related stocks on the other. That combination kept the overall advance modest even as the index stayed in positive territory.
