Australia stocks sink in sea of red as miners, banks lead broad sell-off

Australian shares fell nearly 1.5% on Friday, sinking into a sea of red and hitting their lowest level since mid-July, as losses in miners and financials combined with fading hopes for a domestic rate cut this year weighed on the benchmark.

The S&P/ASX 200 index fell 1.5% to 8,623.30 by 2348 GMT.

The benchmark fell 0.5% on Thursday.

For the week, the index has shed about 1.7%, on track for its third straight weekly decline, as weakness in major banks following Commonwealth Bank’s earnings and Thursday’s jobs data dampened sentiment.

The labor report reinforced expectations that the Reserve Bank of Australia will hold rates steady for longer, curbing hopes of a cut this year.

Higher-than-expected inflation readings earlier this month had already cast doubt on the likelihood of near-term easing, prompting economists to push back forecasts for any policy shift.

On the bourse, miners lost 2.7% on the back of weaker copper prices.

Mining giant BHP Group and Rio Tinto fell 2% each.

For the week, however, the sub-index has gained 5.5%, as higher copper prices for majority of the week lifted the sector while gains in major lithium players such as Mineral Resources added to the sentiment.

Financials declined as much as 1.9%, hitting their worst level since August 14, with the “Big Four” banks leading losses.

The sector has lost 3.1% so far this week, eyeing its worst week since March.

Gold stocks fell 4% on the back of lower bullion prices.

For the week, the sector has risen nearly 10% so far, eyeing its best week since August. Continuing the broader decline, technology stocks fell 4%, hitting their lowest level since April 29.

The sector was also tracking its fourth consecutive session of losses and has shed 5% this week.

Energy stocks declined 1% as lower global oil prices weighed on the sub-index.

Woodside Energy and smaller peer Santos traded largely flat.

New Zealand’s benchmark S&P/NZX 50 index lost 0.5% to 13,540.70 as of 2348 GMT.