Australian shares snapped two consecutive sessions of gains on Thursday, with mining and tech stocks leading the retreat, as investors turned their attention again to recession signs.
The S&P/ASX 200 index closed 1% lower at 6,730.7.
The benchmark rose 0.3% on Wednesday. Market players across the globe flocked towards safe-haven assets like the US dollar and Treasury notes, as fears of the U.S Federal Reserve sticking to its aggressive rate-hike path overshadowed optimism about US corporate earnings.
In Australia, data showing a disappointingly small rise in September jobs supported the case for a slower rate hike by the Reserve Bank of Australia (RBA) in November.
“A softer labour market also increases the likelihood of a December pause by the RBA, but the Q3 CPI data, which will be out next Wednesday, will be an important factor here,” analysts from ANZ Research said.
Miners led laggards, shedding 2.5% as iron ore prices in China dipped on supply-side pressures.
Sector majors Rio Tinto, BHP Group and Fortescue Metals fell between 1.9% and 3.9%.
Banks, healthcare stocks lift Australia shares
Technology stocks followed their Nasdaq peers and closed down 3.8%.
Accounting services provider Xero and ASX-listed shares of Block Inc dropped 5.2% and 7.9%, respectively. Energy stocks jumped about 3.1%, even as oil prices were mixed in Asian trade.
Woodside Energy emerged as one of the top gainers on the bourse with a 6.2% rise, after the company raised its annual production forecast and posted record quarterly revenue, as it benefited from a jump in energy prices and its merger with BHP Group’s petroleum assets.
New Zealand’s benchmark S&P/NZX 50 index fell about 0.8% to 10,832.
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