Australian shares fell on Friday, pulled down by a broad-based decline across the sub-indexes, and led by rate-sensitive financials and mining stocks as metal prices slumped after the US Federal Reserve showed keenness on hiking interest rates.
The S&P/ASX 200 index lost 1% to 7,7737.7 points by 0048 GMT.
The benchmark is on course to lose 1% this week after four consecutive weeks of gains, if trends sustain.
Earlier this week, the US central bank indicated that it was willing to raise interest rates further to curb inflation.
Following a slew of stronger-than-expected economic data from the world’s largest economy on Thursday, investors are now concerned about prolonged high rates.
In Sydney, financial stocks fell 1% and could snap a four-week winning streak by logging a weekly loss of 0.7%.
The country’s largest lender Commonwealth Bank of Australia was likely to log a weekly loss of 1.4%, after gaining in the last four weeks.
Miners shed 0.8% and were on track to log their worst week in five.
BHP Group and Rio Tinto lost 0.5% and 1.2%, respectively. Meanwhile, Fortescue was poised to lose 1.1% this week, after four straight weekly gains.
Australian shares hit record high; RBA cautious on inflation
Energy stocks declined 0.6% and were set to lose for the third straight session.
Sector majors Woodside Energy and Santos shed 0.6% and 0.9%, respectively.
Gold stocks retreated 0.9% as bullion prices hit a one-week low after the dollar strengthened.
The sub-index will lose for the fourth day in a row if losses hold.
Northern Star Resources fell 0.6% to its lowest in nearly two months while Evolution Mining dropped 1.3%.
New Zealand’s benchmark S&P/NZX 50 index retreated 0.9% or 105.05 points to 11,704.43.
The benchmark was poised for best week since early May. Reuters
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