Australian shares fell on Tuesday, as cautious investors awaited the outcome of the central bank’s policy meeting later in the day to see whether it hikes interest rate by the “usual” 25 basis points or more.
The S&P/ASX 200 index was down 0.6% at 7,161.40 by 0029 GMT.
Most sub-indexes were also trading in red. Out of the 35 economists polled by Reuters, 22 forecast a quarter point move, 11 predicted a 40 basis point increase, one expected a 50 basis point hike and one went for no move at all.
Australian shares end lower ahead of RBA policy meeting
In other key markets, Japan’s Nikkei edged 0.1% lower at 27,891.39 and S&P 500 E-minis futures fell 0.3%. In Australia, financials slumped 0.9% to hit a more than two-week low.
The country’s four largest lenders retreated between 0.5% and 1%.
The energy sub-index lost 0.4%, after oil prices settled slightly lower. Sector majors Woodside Energy Group and Santos fell 0.6% and 1.1%, respectively.
Gold stocks declined 1%, following a fall in bullion prices.
Newcrest Mining, Northern Star Resource and St Barbara lost 0.5%-1.2%.
Technology stocks dropped 0.9%, with ASX-listed Block and Computershare falling 1.3% and 0.5%, respectively. On the upside, strong iron ore prices helped the metals and mining index inch up 0.1%. Heavyweights BHP Group, Rio Tinto and Fortescue Metals Group rose between 0.1% and 0.8%.
New Zealand’s benchmark S&P/NZX 50 index slipped 1% to 11,301.71, its biggest drop since May 10 if losses hold. Sky Network Television slumped 7.2% and was on track for its worst day in over 3 months after the broadcaster addressed media speculation regarding its possible acquisition of MediaWorks Holdings Ltd.
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