Australian shares retreated on Thursday from a two-month high clocked in the previous session, with financials and energy stocks weighing the most, even as investors were hopeful to an end to the central bank’s monetary policy tightening.
The S&P/ASX 200 index was down 0.2% at 7,167.50 points, as of 2330 GMT.
The benchmark closed 1.7% higher on Wednesday. Data from the Australian Bureau of Statistics on Wednesday showed that real gross domestic product (GDP) rose 0.2% in the September quarter, short of the 0.4% estimate and the slowest growth in a year.
Softness in GDP growth over the past two quarters is of more importance, which reflects a broader slowing in the economy to a below trend pace of growth, analysts at ANZ wrote on Wednesday.
ANZ analysts view the economic growth data “as adding to the case that the cash rate will remain at 4.35% for some time.”
Heavyweight financials were leading the losses in the benchmark with a 0.6% drop, with ANZ Group and National Australia Bank down 0.5% each.
Energy stocks fell 1.6%, hitting their lowest level since Sept. 26, 2022, as oil prices dropped on increased worries over global fuel demand.
Shares of Woodside Energy and Santos fell 2.9% and 1.9%, respectively.
Gold stocks slipped 0.6%, with Northern Star Resources down 0.8%, while Evolution Mining fell 0.14%.
Australian shares snap 3-day gaining streak
Bucking the trend, the metals and mining index rose 0.6%, tracking higher global iron ore prices on positive economic data and strong demand.
Mining behemoths Fortescue and Rio Tinto gained 1.5% and 1%, respectively. In company news, BHP Group appointed Vandita Pant as its new chief financial officer.
Shares of the miner were flat.
New Zealand’s benchmark S&P/NZX 50 index was listless at 11,453.71 points.
Shares of Fonterra Co-operative jumped nearly 1% as the dairy company increased its fiscal 2024 earnings and farmgate milk price forecasts on Thursday.
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