Australian shares fall as weaker metal prices weigh on miners

Australian shares fell on Friday as weaker metal prices weighed on mining stocks, offsetting gains in technology shares, while investors monitored developments in the US-Iran standoff over the Strait of Hormuz.

The S&P/ASX 200 index lost 0.7% to 9,128.50 by 0028 GMT, on track for its largest weekly drop in nearly four months.

The benchmark lost 0.2% on Thursday.

Sentiment weakened after the US threatened to maintain a prolonged naval blockade of Iran, raising fears of disruptions to global oil supplies.

Back in Sydney, miners fell 2.8%, set for their largest weekly drop in a month, scuppered by a drop in metal prices.

BHP Group and Rio Tinto shed 3.8% and 2.4% respectively, while Fortescue lost 1.6%.

Gold stocks dropped 2.8% and were set for their largest one-day fall in two weeks, pressured by softer bullion prices.

Helping limit broader losses, technology stocks jumped 1.7%, tracking overnight gains on Wall Street, with sector heavyweights WiseTech Global and Xero gaining more than 4% each.

Banks edged up 0.1% in a week packed with three of the country’s major lenders reporting results.

Despite Friday’s gain, the sub-index was on track for its biggest weekly loss in three months. Shares of Westpac were up 0.3%.

The second-largest lender on Monday reported a 20% fall in mortgage applications and forecast investor housing credit growth to halve next year.

Commonwealth Bank of Australia on Tuesday reported a record annual profit, while ANZ flagged in its results that its home loan applications had slumped 12%.

Shares of both lenders were up 0.6% and 0.8% respectively on Friday.

All eyes are now on the last of the ‘Big Four’ banks, National Australia Bank’s third quarter results due next week.

Elsewhere, QBE Insurance tumbled 6% after Citi analysts said ex-catastrophe claims and expense ratios were higher than expected and underwriting profit missed estimates following the insurer’s full-year results.

In New Zealand, the benchmark S&P/NZX 50 index inched up 0.1% at 13,836.32.