Australian shares edged lower on Friday, dragged down by energy and financial stocks, as a strong domestic jobs report fuelled concerns about increased chances of the central bank raising interest rates to control inflation.
The S&P/ASX 200 index fell 0.1% to 7,054.3 by 0010 GMT.
The benchmark has gained 1.1% this week. Australia’s employment rose at a robust pace in October compared to the previous month, data showed on Thursday, even as jobless rate ticked higher as more people went looking for work.
It raised fears that the Reserve Bank of Australia (RBA) might rein in an overheated economy with further rate hikes.
Heavyweight energy stocks dropped 1.5% to their lowest level since May 4, as oil prices slumped on demand worries.
The sub-index was also set for its fourth consecutive weekly drop.
Woodside slumped 2.2% to its lowest level in 7 months, with brokerage Citi cutting price target and rating on the top Australian oil and gas producer. Sector major Santos also fell 1%. Financials lost 0.3%, with three out of the “big four” banks down between 0.6% and 0.7%.
Commonwealth Bank of Australia inched up 0.1%. Local real estate stocks plummeted about 0.9%.
Australia shares hit 8-week high after softer US inflation data
Gold stocks, however, advanced 2.8%, touching their highest level since Nov. 8.
Ramelius Resources and Evolution Mining rose 5.2% and 5.3%, respectively.
Miners also added 0.8% and were set to post their biggest weekly gain since mid-September.
Rio Tinto and BHP Group rose 0.1% and 0.2%, respectively. Technology stocks and health stocks edged 0.5% and 0.3% higher, respectively.
Karoon Energy and Steadfast Group declined 3.5% and 4.1%, respectively, as the companies resumed trading following discounted capital raising.
Graincorp surged 6% to become the top gainer on the benchmark, as the agribusiness company recorded strong full-year results.
New Zealand’s benchmark S&P/NZX 50 index fell 0.5% to 11,178.24.
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