Australian shares edged lower on Monday, dragged down by banks and miners, as a pause in US debt ceiling negotiations raised concerns about a potential default.
The S&P/ASX 200 index fell 0.1% to 7,270.4 by 0047 GMT.
The benchmark gained 0.6% on Friday.
Negotiations to raise the US debt limit were put on hold on Friday, jarring market participants as the United States moved closer to the deadline to avoid default.
US President Joe Biden and House Republican Speaker Kevin McCarthy will meet on Monday to resume debt ceiling talks.
In Australia, investors awaited April retail sales data, due to be released on May 26, and expected to set the tone for the central bank’s rate decision next month.
In Sydney, miners dropped 0.2%, weighed down by dismal demand outlook in top steel producer China.
Neometals emerged as the top loser on the sub-index with a drop of 4.9%.
Financials gave up 0.2%, with the so-called “Big Four” banks down between 0.1% and 0.7%.
Energy stocks rose 1.2%. Sector heavyweights Santos gained 0.8%, while Woodside Energy advanced 0.5%.
Gold stocks inched higher 0.1% as bullion prices extended gains.
Australian shares end higher on Wall St strength, rate-hike pause bets
Meanwhile, Tyro Payments tumbled 17.6% after it ended deal discussions with suitor Potentia Capital, months after the payment terminals firm rejected the private equity group’s A$875 million ($593.5 million) buyout proposal.
New Zealand’s benchmark S&P/NZX 50 index fell 0.6% to 12,022.8.
The country’s central bank is expected to raise the key rate by 25 basis points to 5.50% at its May 24 meeting, according to a Reuters poll.
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