Australian shares head for worst day in nearly three weeks as miners, banks slide

Australian shares fell more than 1% on Tuesday and were on track for their biggest drop in nearly three weeks, as financials and commodity-linked stocks overshadowed gains in tech shares, while National Australia Bank unveiled a major restructuring plan.

The S&P/ASX 200 index fell 1.1% to 8,752.80 by 2327 GMT, heading for its worst session since October 1.

The benchmark closed 0.4% higher on Monday. Selling was broad-based in miners and banks, with softer commodity prices hurting miners and energy firms and National Australia Bank’s restructuring programme adding pressure to lenders.

National Australia Bank said it would cut up to 2,500 jobs, or about 6% of its workforce, in 2027 to simplify its operations as the country’s top business lender grapples with a more challenging outlook for credit growth.

Its shares gave up early gains to trade 1.9% lower, tracking weakness in the sector.

Financials dropped 1.3%, with Commonwealth Bank of Australia, Westpac and ANZ down between 1.2% and 1.6%.

Miners slid 2%, with BHP falling as much as 2.4% after the world’s largest listed miner reported weaker-than-expected first-quarter copper production, hurt by disruptions at its Escondida mine in Chile. Both Rio Tinto and Fortescue declined more than 1%.

Gold miners fell 2.3% after bullion prices closed lower overnight.

Energy stocks slid as much as 1.6%, marking their biggest intraday drop since October 1, after Brent crude edged lower.

Woodside and Santos fell 0.9% and 1.2%, respectively. Bucking the trend, technology stocks advanced as much as 2% to a one-week high after their Wall Street peers closed higher overnight.

Xero and WiseTech Global rose more than 2.3% each.

New Zealand’s benchmark S&P/NZX 50 index was nearly flat at 13,650.72.

Investors were focused on third-quarter inflation data, due later this week, for clues on the central bank’s policy path.

Markets are pricing in an 89% probability of a third rate increase this year at the central bank’s October 28 meeting.