Australian shares edge lower as mining, energy stocks weigh

Australian shares inched down on Thursday, on pace to snap a two-session rally, with commodity-linked mining and energy stocks among the major laggards on the benchmark to track lower underlying base metal and oil prices.

The S&P/ASX 200 index fell 0.1% to touch 8,915.30 by 2322 GMT.

The benchmark rose 0.8% on Wednesday, gaining around 1.7% over the previous two sessions.

The resources sub-index declined 1.4% to shed the most on the benchmark, paralleling a fall in iron ore and copper prices due to a stronger supply and inventory outlook.

Mining giant BHP lost 1.2%, while Rio Tinto slipped 0.2%.

Among gold miners, sector leaders Northern Star Resources and Evolution Mining dropped 1.1% and 2.2%, respectively.

Bullion prices slipped overnight as investors booked profits after a stellar run earlier this week.

The broader sub-index is on track to close the week little changed, capping a week of volatility for miners following a steep swing in metal prices.

Energy stocks added to the main index’s daily decline, as oil prices fell after the US and Iran agreed to hold talks later this week, assuaging fears of a supply shortage.

Index constituent Beach Energy was on track for its weakest trading session in nearly a month after the oil producer’s half-year profit slid 8% on the back of higher cost-of-sales pressures and softer oil and liquids price environment.

Across other sectors on the bourse, healthcare stocks advanced 0.9%, while rate-sensitive real estate and consumer discretionary stocks rose 0.2% and 0.7%, respectively.

Heavily weighted financial stocks were little changed on the day.

Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index were little changed at 13,462.07.