Australian shares on Tuesday closed at their lowest in more than three months, as caution around interest-rate hikes, global economic growth, and the impact of tightened lockdowns in China triggered a broad-based sell-off in equities.
The S&P/ASX 200 index ended 1% lower at 7,051.20, its lowest since Jan. 31, and a third straight losing session.
All major sub-indexes on the local bourse declined. “It feels to me that the (Australian) market is getting close to a bottom,” said Brad Smoling, managing director at Smoling Stockbroking.
The metals and mining index hit an over four-month low, slumping 2.7% on weak iron ore prices.
Sector majors BHP Group, Rio Tinto and Fortescue Metals Group dropped between 2.6% and 3.6%.
Energy stocks slid 2.1% to their lowest in more than a month after crude prices tumbled due to COVID-19 lockdowns in top oil importer China and concerns over global demand outlook.
Although oil prices have been falling in the last couple of days, “it is still looking strong, which indicates that this is more of a correction,” Smoling added. Major oil and gas explorers Woodside Petroleum and Santos fell 2.6% and 1.7%, respectively.
Financials were down for a fourth straight day, shedding 0.4%, and touched an eight-week low.
Australia shares end choppy session lower ahead of U.S. Fed meet outcome
Two of the country’s “Big Four” banks declined about 0.9%, while National Australia Bank and Westpac Banking rose about 0.3% and 0.2%, respectively.
Gold stocks also retreated 3.1%, touching their lowest since Feb. 14, with Northern Star Resources and Newcrest Mining down 3.6% each.
Separately, a survey showed Australia’s business conditions rose strongly in April as hard-hit services recovered from the lagged effect of the COVID-19 pandemic.
Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index slipped 1.3% to finish at 11,229.45.
Comments
Comments are closed.