Australian shares slipped on Monday after the New York Federal Reserve president pushed back against rate-cut hopes, while Link Administration soared as Japan’s Mitsubishi UFJ Financial Group said it would buy the Australian pension administration firm for A$1.2 billion ($802.7 million).
The S&P/ASX 200 index fell 0.1% to 7,437.50 by 0015 GMT after a six-session winning streak.
The benchmark rose 0.7% on Friday.
New York Fed President John Williams said on Friday the central bank remained focused on bringing inflation down to its 2% target and it’s “premature’ to talk about rate cuts at this point”.
In Sydney, financials led the retreat, shedding 0.3% after a six-session rally.
The “big four” banks slipped between 0.2% and 0.6%. The heavyweight metals and mining index fell 0.1% after three straight sessions of gains.
The decline came after Dalian iron ore futures dropped on Friday on softening demand and expectation of a lack of forceful stimulus in 2024 from top consumer China.
Sector majors BHP Group and Rio Tinto were down 0.2% each. Gold stocks fell 0.8% after two consecutive sessions of gains, with Northern Star Resources and Evolution Mining down 1.0% and 0.3%, respectively.
Bucking the trend, energy stocks gained 0.1%, with shares of sector major Woodside Energy rising 0.3%.
Financials push Australian shares higher; Fed in focus
Among individual stocks, Link Administration soared as much as 28.8% and was set for its best day ever.
Link’s acquisition represents Mitsubishi UFJ Financial Group’s seventh buy in the fund administration industry in the decade. New Zealand’s benchmark S&P/NZX 50 index fell 0.2% to 11,532.62.
Consumer confidence in New Zealand jumped in the fourth quarter to its highest level in nearly two years, although it was still well below average, a survey showed.
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