Australian stocks fell 0.7 percent on Friday to their lowest close in two weeks, snapping a three-week winning streak as investors paused for breath amid expectation for tightening in China after higher-than-expected inflation. China is Australia's top trade partner and further monetary tightening could hurt demand for natural resources.
Bank stocks fell, with No 4 lender Australia and New Zealand Banking Group leading the way with a 1.7 percent drop. Lingering sovereign debt troubles in Europe are seen hurting banks that rely on offshore debt for annual funding. Top lender National Australia Bank fell 1.1 percent. NAB said it was experiencing some delays in updating customer accounts and it was working to rectify it. It was the second time in just a few months it experienced technical difficulties.
The benchmark S&P/ASX 200 index fell 32.15 points, to 4,852.10 according to latest available data. The index dropped 1.8 percent for the week. Global miner Rio Tinto slipped 1.1 percent and BHP Billiton fell 1 percent as metal prices slipped after China data showed strong economic growth and a 32-month high for March consumer prices. Miner Macarthur Coal rose more than 2.5 percent to A$12.12 after it was upgraded to a buy by Credit Suisse, Barrett-Lennard said. Contractor Leighton Holdings extended Thursday's 12 percent loss, easing 0.2 percent to A$24.88.
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