SYDNEY/WELLINGTON: Australian shares closed lower on Tuesday weighed down by tech stocks and as the country’s central bank in a policy meeting decided to pare its bond buying programme. The S&P/ASX 200 index reversed gains made in the morning trade to end 0.7% lower at 7,261.8 points, it’s lowest in a week.
The Reserve Bank of Australia in its July policy meeting on Tuesday held the cash rate at 0.1%, as widely expected, and highlighted ongoing virus outbreaks as a key near-term uncertainty. However, the jump in oil prices boosted Australia’s energy sub-index which rallied to 1.6%, after hitting a near 3-week high during Tuesday’s session.
The tech stocks fell 1.8%, weighing on the benchmark, led by Appen Ltd, down 6.2%, and Megaport Ltd, losing 3.5%. Further souring sentiments were the big four banks, down between 0.2% and 0.6%, while the financial sub-index fell 0.42%. In New Zealand, the benchmark S&P/NZX 50 index fell 0.4% to 12,758.9.
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