The local share market has closed lower, with sentiment turning sour as Israel amasses troops on the border of Gaza to prepare for a land invasion.
The benchmark S&P/ASX200 index on Monday finished 24.5 points, or 0.35 per cent, to 7,026.5, while the broader All Ordinaries fell 28.9 points, or 0.4 per cent, at 7,214.6.
In Israel, the military was launching airstrikes against Gaza and seemed poised to launch its biggest ground operation since the 2006 invasion of Lebanon, telling 1 million Gaza residents to head south for their safety as a humanitarian crisis escalated.
"The escalation in the Israel-Hamas conflict has caused risk aversion to rise among investors, contributing to a drop in global bond yields and sell off in major global share markets," St George chief economist Besa Deda said. "The Middle-East conflict is fuelling demand for safe-haven assets."
Fletcher Building was the biggest loser in the ASX200, dropping 8.6 per cent to a six-month low of $4.07 as its shares resumed trading following a controversy last week, after homebuilder BGC accused Fletcher's Iplex Australia subsidiary of supplying defective polybutylene pipes to the Perth market.
In a detailed rebuttal, Fletcher said that evidence points to shoddy installation being behind the plumbing failures that have caused water damage in 1,908 new homes in Perth over the past two years.
The tech sector was the biggest loser sector-wise, dropping 2.8 per cent, with Xero falling 3.4 per cent and Wisetech Global closing 2.3 per cent lower.
All of the Big Four banks finished in the red, with Westpac down 0.8 per cent to $21.31, ANZ falling 0.6 per cent to $25.55, NAB down 0.7 per cent to $29.13 and CBA dipping 0.3 per cent to $100.67.
In the heavyweight mining sector, goldminers were ascendant as the safe-haven asset traded for $US1,913 an ounce, up nearly $US100 from its price nine days ago.
Northern Star gained 3.2 per cent to $11.40, Evolution rose 1.5 per cent to $3.48 and Newcrest added 3.3 per cent to $26.86, in the final days before its acquisition by Newmont is made official.
Liontown Resources was in a trading halt after US lithium giant Albermarle advised it was walking away from its $6.6 billion takeover bid, citing the "growing complexities associated with executing the transaction."
Billionaire Gina Rinehart's Hancock Prospecting has acquired a 19.9 per cent stake in the emerging lithium miner over the past month, complicating any acquisition.
Elsewhere in the sector, BHP gained 0.4 per to $45.18, Fortescue Metals added 0.3 per cent to $21.54 and Rio Tinto climbed 0.9 per cent to $115.72.
Qantas dropped 2.4 per cent to $4.90 as the embattled airline announced that Qantas Loyalty CEO Olivia Wirth - who had been a top contender to replace Alan Joyce as Qantas Group CEO - would step down in February "to pursue other opportunities."
Treasury Wine Estates rose 1.3 per cent to $11.59 as executives reaffirmed guidance at the wine group's annual general meeting, saying the demand for luxury wine remained strong.
The Australian dollar was buying 63.29 US cents, from 63.19 US cents at Friday's ASX close.
ON THE ASX:
* The S&P/ASX200 index finished Monday down 24.5 points, or 0.35 per cent, at 7,026.5
* The All Ordinaries dropped 28.9 points, 0.4 per cent, to 7,214.6
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 63.29 US cents, from 63.22 US cents at Friday's ASX close
* 94.63 Japanese yen, from 94.60 yen
* 60.09 Euro cents, from 59.92 Euro cents
* 52.01 British pence, from 51.80 pence
* 106.88 NZ cents, from 106.74 NZ cents
