Australian shares fell more than 1% on Thursday, tracking sharp declines on Wall Street as the escalating Middle East conflict triggered a broad sell-off and stoked oil supply concerns.
The S&P/ASX 200 index fell 1.4% to 6,978.7 by 2350 GMT, with most major sectors trading in negative territory.
The benchmark index gained 0.3% on Wednesday. Australia’s employment rose less than expected in September, following a blowout result the month before, but the jobless rate still ticked down in a sign the labour market remained drum tight.
On Wednesday, the Australian central bank governor said the domestic economy was in a “challenging” situation with consumption slowing but inflation still elevated, and monetary policy was on a narrow path to balance these forces.
Heavyweight miners led the losses with a 1.6% drop, after iron ore retreated on Wednesday as lower-than-expected Chinese steel output and a protracted property crisis fuelled demand concerns.
Top miners Rio Tinto and Fortescue fell 2.2% and 1.1%, respectively.
Financials declined 1.2%, with the “big four” banks down between 1.2% and 1.5%. Energy stocks lost 0.6%.
Shares of Santos were down 0.3% even after the country’s No. 2 independent gas producer reported a 7.5% sequential rise in quarterly revenue, helped by increased crude oil volumes and higher prices.
Gold stocks gained 0.3% after bullion prices rose to a more than two-month high on Wednesday as the escalating Middle East conflict sent investors flocking towards the safe-haven metal.
Tech stocks dropped 1.2%.
Australian shares inch lower as banks, tech stocks drag
Xero and Computershare fell 1.4% and 1.3%, respectively.
In corporate news, Qantas Airways will drop its $387 million plan to buy out charter flight operator Alliance Aviation Services.
Qantas shares fell as much as 3.7%, hitting their lowest since August 2022. In New Zealand, the benchmark S&P/NZX 50 index fell 0.8% to 11,136.56.
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