Australian shares retreated on the last trading day of the year on Friday, with commodity stocks leading the fall in broad-based selling, even as bets mounted that key global central banks will start to cut interest rate from early next year.
The S&P/ASX 200 index fell 0.3% to 7,595.3 by 0032 GMT after two straight sessions of gains, but was set to post an annual rise of about 8%.
For the week, the benchmark has risen 1.3% so far, heading for its fifth straight weekly gain.
Mining stocks led the losses on Friday, declining 0.6% after a fall in copper and aluminium prices as investors locked in profits from a rally before the end of the year.
Mining behemoths BHP Group, Rio Tinto and Fortescue dropped between 0.7% and 0.8%.
Energy stocks slipped 0.4% as concerns eased about crude oil supply disruptions after shipping companies announced their readiness to transit the Red Sea route.
Sector heavyweights Woodside Energy and Santos fell 0.5% and 0.7%, respectively.
Australian shares trade near 20-month high, miners lead gains
Gold stocks fell 1.8% and were poised for their worst session since Dec. 6, after a slightly stronger US dollar and higher Treasury yields soured bullion appetite overnight.
Northern Star Resources was down 2.1%, while Evolution Mining slipped 1.4%. Rate-sensitive financials skidded 0.1%, with the “Big Four” banks down between 0.1% and 0.5%.
Among other sectors, healthcare was flat and real estate eased 0.1%.
In New Zealand, the benchmark S&P/NZX 50 index traded flat at 11,770.49, but was poised for a 2.6% yearly gain.