Australian shares extended losses on Wednesday to briefly enter correction territory, as investor appetite dampened after local media reported that the White House had confirmed no exemptions for Australia from US steel and aluminium tariffs.
The S&P/ASX 200 index fell 1.2% to 7,793.6, as of 0001 GMT.
The benchmark fell as much as 1.6% earlier in the session, down about 10% from its all-time high touched on February 14, which is commonly known as a market correction.
Local media reported that Australia will not be exempt from US steel and aluminium tariffs that President Donald Trump’s administration will impose on other countries, citing White House spokeswoman Karoline Leavitt.
Trump agreed in February to consider exempting Australia from the tariffs in view of the US trade surplus with the country but eventually decided against it, the reports said.
Meanwhile, equities in the US continued their biggest selloff in months overnight, after Trump said he would double tariffs set to take effect within hours on all imported Canadian steel and aluminium products to 50%.
Back home in Sydney, real estate stocks fell as much as 1.5% to hit their lowest level since July 2, 2024. Heavyweight financials were down for a seventh straight session, losing as much as 1.7% to hit their lowest level since October 7, 2024.
The ‘Big Four’ lenders dropped between 1.1% and 1.9%. Miners shed 0.7% tracking the broader index.
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The world’s largest listed miner BHP Group dropped 1.1%, while Rio Tinto and Fortescue fell 2.2% and 1.6%, respectively.
Bucking the trend, gold stocks rose 0.8% as gold prices gained on safe haven demand amid a weaker dollar and economic slowdown worries due to tariff wars.
Meanwhile, New Zealand’s benchmark S&P/NZX 50 index fell 0.9% to 12,305.19.
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