Australian shares declined on Wednesday, after ending the last session at an 11-week high, as a slide in gold stocks outweighed the strength in tech and energy, amid growing expectations of an interest rate cut by the local central bank next week.
The S&P/ASX 200 index fell 0.1% to 8,260.3 points by 0053 GMT.
The benchmark had ended 0.4% higher on Tuesday.
The Reserve Bank of Australia is expected to cut rates at its policy meeting on May 20, with expectations currently indicating a 95.3% chance of a cut.
Gold miners shed 0.3%, with St Barbara and Northern Star Resources losing 0.9% and 2%, respectively.
“Gold miners continue to be sold off amid increased appetite for growth stocks following the temporary China-US trade deal announcement,” said Grady Wulff, a market analyst at Bell Direct.
Insignia Financial, one of the biggest losers on the benchmark, slumped as much as 14.8% after Bain Capital walked away from a binding takeover bid.
Aristocrat Leisure slipped more than 15% after the gaming firm missed its half-year revenue estimates.
Meanwhile, Australia’s corporate regulator said it has started legal action against Macquarie Securities (Australia), alleging the firm inaccurately reported millions of short sales for more than 14 years. The company is owned by Macquarie, which is down 1.1%.
Energy stocks rose 2.6% on the back of rising oil prices.
Woodside advanced 3.9% on signing a non-binding agreement with Aramco to explore opportunities, including the Saudi Arabian company’s potential stake acquisition in the Louisiana LNG project.
Santos gained 2.5%.
Australian shares rise on trade optimism
Technology stocks tracked their overseas peers higher, rising 1.4%.
Financials added 0.1%, with the Commonwealth Bank of Australia climbing 0.3% after posting a 6% rise in its third-quarter cash earnings.
New Zealand’s benchmark S&P/NZX 50 index rose 0.1% to 12,798.75 points.