Australian shares edged lower on Thursday, in tandem with global markets, dragged by losses in technology and banking stocks as investors remained wary of potential rate hikes by the US Federal Reserve.

The S&P/ASX 200 index fell 1% to 7,164.50 by 0031 GMT. The index gained 0.3% on Wednesday.

Global equities traded lower after economic data from US remained supportive of the Fed’s planned pace of interest rate hikes, potentially influencing central banks elsewhere.

Elsewhere in Asia, Japan’s Nikkei was down 0.6% at 27,308.25, while Wall Street’s S&P 500 E-minis futures were 0.07% higher.

Domestic technology stocks emerged as top drag on the benchmark, shedding over 2%, on track for a third session of losses after tracking overnight declines on the Wall Street.

Sector majors ASX-listed shares of Block Inc., Xero Ltd, Computershare Ltd plunged between 0.4% and 6.6%.

Financials lift Australia shares after GDP growth beats estimates

Financials slipped over 1% with all of the so-called “Big Four” banks trading in negative territory.

The export-reliant mining sub-index fell close to 0.5%, even as iron ore prices continued to move upwards. Sector giants BHP Group, Rio Tinto shed 0.7% each.

Bucking the trend, energy stocks gained over 2% on sharper oil prices after European Union leaders agreed on a phased ban on Russian oil, while the ending of COVID-19 lockdown in Shanghai raised demand prospects.

Additionally, gold stocks inched 0.7% higher on global inflation woes. New Zealand’s benchmark S&P/NZX 50 index shed 0.5% to 11,322.32 by 0031 GMT.

The Reserve Bank of New Zealand said it will allow registered trading banks to resume paying dividends, lifting the complete restriction it had placed earlier.