Australian shares fell on Monday, dragged down by losses in heavyweight banks and miners, while technology stocks also declined in line with a sharp sell-off among its US peers.
The S&P/ASX 200 index fell 0.4% to 8,939.7 points by 0107 GMT.
It had ended Friday 0.1% lower.
The benchmark index marked its best August since 2009, gaining nearly 2.6% last month, as a wave of upbeat earnings propelled several stocks to record highs, driving broad-based gains across sectors.
Heavyweight miners fell 0.2% after an official survey showed that China’s manufacturing activity shrank for a fifth straight month in August.
China is Australia’s largest export market and a dwindling manufacturing sector points to weaker demand for raw materials used in industrial production. Sector major BHP Group lost 1%, while iron ore miner Rio Tinto shed 1.2%.
Technology stocks dropped nearly 2%, tracking a major sell-offon Wall Street’s tech-heavy Nasdaq on Friday.
ASX-listed Xero retreated 2%, while WiseTech Global slipped 3%.
Continuing the trend, health stocks eased 0.2%. Energy firms dipped 0.6% on the back of lower oil prices.
Woodside Energy was down 1%.
Rate-sensitive financials fell 0.2%, with three of the “Big Four” lenders losing between 0.2% and 0.6%.
However, ANZ Group rose 0.2%.
Gold stocks advanced 3% to its highest since June 16 as bullion soared after US inflation data reinforced hopes that the Federal Reserve could cut interest rates this month.
In corporate news, RPMGlobal scaled a record peak after receiving a takeover offer from the world’s largest construction company, Caterpillar, which valued the mining software firm at A$1.12 billion ($727.8 million).
New Zealand’s benchmark S&P/NZX 50 index traded largely flat at 12,935 points.
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