Australian shares extended their losses on Friday, led by financials, as global markets remained under pressure from a hawkish US central bank, although domestic miners edged higher on the back of upbeat iron ore prices.
The S&P/ASX 200 index was down 0.3% at 6386.00 points, as of 2358 GMT, but was set for a weekly climb of 1%, if gains hold.
The benchmark ended 1.8% lower on Thursday.
Wall Street fell for a fourth straight day as economic data failed to alter expectations that the US Federal Reserve would soon back down from its aggressive rate-hike cycle.
In the local market, heavyweight Australian financials shed about a percent, with the “Big Four” banks dropping as much as 1.2%.
The Reserve Bank of Australia on Friday downgraded the outlook for economic growth, warning that more rate hikes will be necessary to bring down sky-high inflation even as it strives to avoid an outright recession.
Meanwhile, miners rose 0.5% as iron ore prices jumped on hopes that China would ease its strict COVID-19 restrictions and offer policy support to the economy.
Shares of BHP Group, Fortescue Metals Group and Rio Tinto added between 0.3% and 0.7%.
Australian shares dive on hawkish Fed; Perpetual soars on rejecting buyout bid
Energy stocks rose 1.1%, with index majors Woodside Energy and Santos jumping about 1% each.
Whitehaven Coal climbed 2.6% to become the top gainer in the main index.
Shares of Star Entertainment traded flat after the company said three of its units received showcause notices from a Queensland regulator for matters related to a review of their casinos in the state.
New Zealand’s benchmark S&P/NZX 50 index was down 0.43% at 11,135.64 points, as of 2357 GMT.
The top loser in the index was Skycity Entertainment with a nearly 2% slump.
Comments
Comments are closed for this article.