Australian shares were set to snap a three-day rally on Tuesday, weighed by losses in miners and financials, as investors took a cautious stance ahead of a key US inflation reading and Federal Reserve’s policy announcement due this week.
The S&P/ASX 200 index fell 1.2% to 7,765.20 points at 0109 GMT.
The benchmark was closed on Monday for a public holiday.
The US Consumer Price Index (CPI) report for May is due on Wednesday along with the conclusion of the Fed’s two-day policy meeting.
Investors will keep an eye out for cues on the timeline of monetary policy easing in the United States.
Back in Australia, all sub-indexes were down on the day. Miners topped losses to fall as much as 2.2% to their lowest level since early May.
Mining behemoth BHP Group fell as much as 1.4% and Fortescue shares dropped as much as 2% to their lowest level since March 19.
Interest rate-sensitive financial stocks fell as much as 1.2%, with the “Big Four” banks shedding between 1% and 1.3%. Gold stocks lost as much as 5.9%.
Gold miners Evolution Mining and Northern Star Resources fell as much as 7.3% and 6.2%, respectively. Energy stocks fell as much as 0.8%.
Australian shares hit record high; RBA cautious on inflation
However, oil and gas giant Woodside rose as much as 1% to A$27.49 in early trade, after it said it achieved its first oil production at the Sangomar project in Senegal.
In other company news, mining giant Rio Tinto said it will buy Mitsubishi Corp’s 11.65% stake in Boyne Smelters for an undisclosed sum.
Shares of the company fell as much as 1.3% to A$123.65.
Shares of Bapcor soared as much as 14.5% after the automotive parts retailer confirmed it received a A$1.83 billion ($1.21 billion) buyout offer from private equity firm Bain Capital.
Meanwhile, New Zealand’s S&P/NZX 50 index rose 0.3% to 11,821.57 points after falling for three straight sessions.
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