Australian shares slid on Wednesday, dragged by commodity and banking stocks, while sentiment remained bleak after the country’s central bank signalled the need for more rate hikes.
The S&P/ASX 200 index retreated 0.8% to 7,175.9 by 0055 GMT.
The benchmark closed 0.5% lower on Tuesday.
Minutes from the Reserve Bank of Australia’s (RBA) May policy meeting showed board members agreed that further increases in interest rates may still be required, depending on how the economy and inflation evolve in the country.
Markets have priced an 85% chance of a pause in interest rates in June, while seeing a higher risk of a hike in August or September.
They also pushed back the first rate cut to March next year.
Investors also mulled over the ongoing US debt ceiling talks while the US retail sales data for April pointed to a softer consumer spending.
Back in Sydney, heavyweight mining stocks dropped 1.5% on weak iron-prices. Sector majors BHP Group and Rio Tinto both fell about 1.4%.
Gold stocks slid 2.1% as bullion weakened, with Newcrest Mining and Northern Star Resources falling 2% and 1.2%, respectively.
Financial stocks retreated around 1%. All four of the so-called “Big Four” bank declined.
Energy stocks slid 0.4% as oil prices fell overnight. Sector majors Woodside Energy and Santos Ltd lost 0.3% and 0.5%, respectively.
Healthcare stocks traded in the negative territory.
Technology stocks were the only gainers, with Xero Ltd jumping 1.4%.
Among individual stocks, Incitec Pivot, fell 7.8% and was the top drag on the benchmark, after co’s half-year net profit from continuing operations attributable slumped 55.5%.
Australian shares fall ahead of RBA minutes
Shares of Solvar Ltd fell 4.9% after Australian regulatory body ASIC filed proceeding against its unit in the Federal Court of Australia.
New Zealand’s benchmark S&P/NZX 50 index retreated 0.3% to 11,918.85.
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