Australian shares declined for a third straight session on Thursday, as better-than-expected US economic data renewed fears that a sticky inflation would mean another interest rate hike by the Federal Reserve this year.
The S&P/ASX 200 index fell 0.6% to 7,207.50 by 0010 GMT.
The benchmark ended 0.8% lower on Wednesday. Data showed US services sector unexpectedly gained steam in August, weighing on risk sentiment in offshore markets.
The dour mood may worsen in Asia with the release of China’s trade data that is expected to show imports and exports continued to contract in August, albeit at a slower pace.
The Australian economy expanded by more than expected in the second quarter, driven by exports and investment, while household consumption remained weak as decade-high interest rates lowered demand.
Miners plunged 2.4% and were set to drop most in three weeks, tracking sliding copper prices.
A Fitch report stated that cash flows of global mining giants, including Australia’s BHP Group, will be hit by a new law in Chile requiring copper producers to pay more taxes and royalties to the government.
BHP dropped 4.5%, making its stock the second-biggest decliner on the benchmark. Banks dipped 0.4%, with the “big four” banks down between 0.2% and 0.7%.
National Australia Bank fell 0.6%.
The lender is planning to cut 222 jobs in the personal lending, technology, corporate finance and client coverage departments, the Australian Financial Review reported on Wednesday.
Technology stocks shed about 1% on overnight Wall Street losses.
ASX-listed shares of Block and Xero lost 1.5% and 0.9%, respectively.
Super Retail Group was the biggest laggard on the domestic bourse, slumping more than 7%, their biggest intra-day drop in over 4 months.
New Zealand’s benchmark S&P/NZX 50 index fell 0.2% to 11,405.73.
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