Australian shares fell to hit nearly a seven-month low on Tuesday, led by a selloff in financial stocks, tracking a global decline in equities after uncertainties around tariffs imposed by US President Donald Trump raised fears of a recession in the country, while Qantas fell on trading ex-dividend.
The S&P/ASX 200 index fell 1.5% to 7,843.80 by 2356 GMT, to hit its lowest level since August 14, 2024.
US equities fell overnight, with the S&P 500 logging its biggest one-day drop since December 18, 2024, and the tech-loaded Nasdaq sliding 4.0%, as fears of a recession in the world’s largest economy loomed.
On the local bourse, financial stocks, which make up the heaviest sub-index on the benchmark, fell as much as 1.9% to hit its lowest level since October 8, 2024.
The country’s “big four” lenders are down between 0.1% and 1.9%.
Qantas Airways fell as much as 10.5% on track to log its worst session since March 19, 2020, as the airline traded ex-dividend.
Miners fell 1.4% as iron ore prices slipped amid concerns over US tariffs and China’s pledge to cut crude steel output this year clouded demand prospects.
Sector heavyweights Rio Tinto and Fortescue dropped 0.5% and 1.7%, respectively.
Energy stocks added to the losses, inching 0.1% lower as oil prices were hurt by fears of US tariffs on Canada, Mexico and China slowing economies around the world, slashing energy demand.
Gold stocks dropped as much as 4.5%, on track for their weakest session since December 19, 2024, tracking a decline in gold prices.
Australian shares post modest gains as commodities support
Among individual stocks, biotechnology company PolyNovo fell about 10% to hit its lowest level since October 30, 2023, after it removed its CEO.
The move came after discussions with the executive last week over media allegations about bullying by the firm’s chairman directed at its CEO.
New Zealand’s benchmark S&P/NZX 50 index was down 0.7% at 12,423.12 points.
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