Australian shares slipped on Monday, hit by rising tension on the Korean peninsula after North Korea conducted its sixth and most powerful nuclear test, hurting sentiment across the region.
North Korea on Sunday said it tested an advanced hydrogen bomb for a long-range missile, in a dramatic escalation of Pyongyang's stand-off with the United States and its allies.
The S&P/ASX 200 index (xjo) fell 0.4 percent, or 24.7 points, to 5699.90 by 0135 GMT.
"The index is down due to geopolitical tension caused by North Korea testing the hydrogen bomb over the weekend," said Adam Tout, a senior analyst at CPS Capital in Perth. "The market is being cautious due to geopolitical risk."
Financial stocks were the biggest drag on the index. Aussie financial stocks .AXFJ fell 0.9 percent with the "Big Four" banks, Westpac (WBC), Commonwealth Bank of Australia (CBA), National Australia Bank (NAB) and Australia and New Zealand Banking Group (ANZ), slipping in the range of 1.5 percent to 0.6 percent.
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