Australian shares hit a four-week low on Tuesday dragged down by commodity stocks on weaker underlying prices, while production season kicked off with Rio Tinto’s December quarter update.
The S&P/ASX 200 index fell as much as 0.9% to 7,430.60 by 2347 GMT, its lowest level since Dec. 19.
Heavyweight miners led losses on the benchmark, dropping as much as 1.3% to hit their lowest level since Dec. 7.
Iron ore future prices slipped on Monday as top consumer China held its medium-term interest rate steady, defying market expectations.
Rio Tinto dropped nearly 1% to its lowest level since Dec. 7, despite reporting its second highest-ever iron ore shipments in 2023.
It also said it expected stimulus measures in China to drive a slow recovery in the world’s biggest steel user. BHP Group and Fortescue fell 1.2% and 1.3%, respectively.
Energy stocks declined 0.9%, and were on track for their biggest daily drop since Dec. 5, after a limited impact of the Middle East conflict on oil production triggered profit taking, following a 2% rise in benchmark prices last week.
Sector major Woodside Energy lost as much as 1.2%, its biggest intraday loss in a month, and Santos dipped 1.4%.
Financials dropped 0.4%, with the ‘big four’ banks losing between 0.1% and 0.6%.
Consumer stocks retreated 1.1%, with top supermarket chains Woolworths and Coles sliding 1.5% and 1.7%, respectively.
Australian shares close largely flat
A survey showed that Australian consumer sentiment took a turn for the worse in January, as cost-of-living pressures and higher mortgage rates stoked concerns over finances.
Healthcare stocks declined 0.8%, gold stocks dipped 0.3%, and technology firms fell nearly 1%. Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index inched down 0.2% at 11,744.72.
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