SYDNEY: Australian shares edged lower on Friday, led by losses in heavyweight miners as investors booked profits a day after the benchmark’s strongest session in over a year.
The S&P/ASX 200 ended down 0.5 percent at 9,020.80. The benchmark advanced 2.6 percent on Thursday.
The index eked out a 1.3 percent weekly gain, benefiting from a dovish central bank which lifted interest rates to an 18-year high of 4.85 percent, combined with a Democratic midterms sweep boosting hopes of a resolution to the US-Israeli war on Iran.
Risk appetite on Friday, however, was hampered after a rout in Asia’s tech-heavy markets and oil prices rebounding to USD100 on Gulf supply concerns.
“The ASX is managing to hold up better than most regional peers precisely because the local market has less direct exposure to the AI and data-centre theme that has been hit hardest by the Democratic midterm result,” said KCM Trade chief market analyst Tim Waterer.
Miners logged their worst day since late October after a 7.9 percent surge in the last session, as the global AI selloff hit copper prices. BHP and Rio Tinto dropped 2.3 percent and 2 percent, respectively.
Technology stocks tracked overnight Wall Street losses, with WiseTech Global and Technology One falling 0.7 percent and 1.5 percent, respectively.
Conversely, financials closed up 0.6 percent. Macquarie, however, dipped 3.7 percent despite booking record first-half profit. Net profits at the investment bank’s commodities and trading division jumped 83 percent, capitalising on volatile energy prices due to the Gulf conflict.
Investors are wary of betting on sustained commodity-driven profits as the Middle East conflict remains unresolved and the outlook for energy prices uncertain, Waterer said.
New Zealand’s political parties ended their election campaigns while polls still remained tight as voters weigh a faltering economy and waning faith in the major parties.
The S&P/NZX 50 slipped 0.7 percent to 13,998.50. The index, however, booked a 1.5 percent weekly gain, its best since late August.
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