Australian stocks inch lower; BHP falls on weaker copper output

Australian shares edged lower on Thursday as losses in mining and energy stocks outweighed gains in financials, with BHP dragging on the benchmark after weaker quarterly copper output.

The S&P/ASX 200 index fell 0.1% to 8,831.80 by 0006 GMT after a 0.4% gain on Wednesday.

BHP Group shares dropped 0.7% after the world’s largest listed miner posted a 5% fall in copper production due to lower contribution from Escondida and Pampa Norte.

The mining behemoth, however, largely matched Visible Alpha estimates on copper and iron ore output for the fourth quarter.

Later in the day, hundreds of workers are scheduled to go on strike at BHP’s Port Hedland iron ore operations, with negotiations set to resume on Tuesday next week.

The mining index slid 0.6%.

Rio Tinto declined 0.8%, paring some gains from the previous session when it reported a 7% increase in second-quarter iron ore sales.

Financials gained 0.2% with the “Big Four” banks up between 0.1% and 0.6%, underpinned by strong earnings from their Wall Street peers.

Consumer staples dropped 1.6%, with the sector set for a fifth straight session of losses.

Supermarket operators Coles and Woolworths fell nearly 2% each.

Energy stocks inched 0.4% lower, with Woodside Energy and Viva Energy down 0.6% and 1.3%, respectively.

Real estate, healthcare and industrial stocks climbed between 0.1% and 0.4%.

Technology stocks inched 0.2% higher, tracking their US counterparts.

Xero rose 1.5%, while NEXTDC climbed 0.2%.

Gold stocks slid 0.7% after bullion prices fell overnight amid inflation worries and escalating tensions in the Middle East.

New Zealand’s benchmark S&P/NZX 50 index fell 0.3% to 13,589.25 and was set for a fourth straight session of losses.