Australia shares drift in tight range as tariff jitters drive safe-haven demand

By Rajasik Mukherjee

July 14 (Reuters) - Australian shares struggled for direction on Monday as losses in banks and technology stocks countered gains in commodity stocks, while uncertainty regarding U.S. President Donald Trump's tariffs prompted investors to seek refuge in safe-haven assets.

The S&P/ASX 200 index .AXJO rose 0.2% earlier in the session but reversed all of it to end the day 0.1% lower at 8,570.40 points.

The benchmark had lost 0.3% last week.

Over the weekend, Trump's latest tariff move – imposing a 30% levy on most imports from the European Union and Mexico - further stirred the pot.

The lack of clarity on Trump's plans, including a potential 200% tariff on Australian pharmaceuticals, has spooked investors and sent them seeking solace in safe-haven assets.

On the Sydney bourse, gold stocks .AXGD rose 1.9% on safe-haven demand and higher prices of the yellow metal. Evolution Mining EVN.AX and Northern Star Resources NST.AX - both gold miners - soared 1.6% and added 1.8%, respectively.

Mining stocks .AXMM rose 0.9%, with the index hitting its highest since February 25 on the back of higher iron ore prices. Rio Tinto BHP.AX, major iron ore miners, rose 0.9% and 1.1%, respectively. IRONORE/

Energy stocks .AXEJ gained 0.5% as oil prices rose on the hopes that the further U.S. sanctions on Russia could unsettle global supplies. O/R

Oil and gas majors Woodside Energy WDS.AX and Santos STO.AX each added 0.5%.

Investors sought refuge in miners, dumping bank stocks amid market uncertainty, as the former showed it can thrive in volatile conditions, said Grady Wulff, senior market analyst with Bell Direct.

Financials .AXFJ lost 0.3%, with three of the "Big Four" banks falling between 0.3% and 0.9%, while the National Australia Bank NAB.AX rose 0.4%.

The technology sub-index .AXIJ shed 0.4%, tracking its U.S. peers, with sector major WiseTech Global WTC.AX losing 1.3%.

New Zealand's benchmark S&P/NZX 50 index .NZ50 ended the largely flat at 12,678.69 points.

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