Australian shares ended flat with a positive bias on Monday, as escalating Middle East tensions triggered a global sell-off.
The S&P/ASX 200 Index was little changed to close at 8,548.40.
Israel launched strikes on Iran's military and nuclear sites, prompting retaliatory attacks as both sides exchanged blows over the weekend.
"Investors moved quickly to sell-off risky assets following the news," Ryan Wells, Economist at Westpac Group, said in a report by Westpac Economics.
"Prospects for de-escalation remain very uncertain," Wells added.
On the domestic front, Westpac (ASX:WBC, NZE:WBC) says global markets have steadied as tariff risks recede, but growth uncertainty lingers amid rising geopolitical tensions and cautious monetary easing by central banks, including the US Federal Reserve and Reserve Bank of Australia.
In company news, the Australian Securities and Investments Commission (ASIC) launched an inquiry into ASX (ASX:ASX) to be led by an expert panel, focusing on governance, capability, and risk management frameworks and practices across the group. Shares fell 7% at market close.
The Australian Securities and Investments Commission (ASIC) prepared 17 briefings related to Macquarie Group (ASX:MQG) in the last 10 months, The Australian reported.
Lastly, Santos (ASX:STO) received a final non-binding indicative proposal from a consortium led by XRG to acquire all of the firm's ordinary shares on issue for $5.76 per share via a scheme of arrangement. Shares of the company rose 11% at market close and earlier hit a one-year high.
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