Australian shares almost flat as NEXTDC rout offsets gains in banks

Australian shares were little changed on Wednesday as a record selloff in NEXTDC countered gains in banks after the data-centre operator cut its 2027 forecast due to delays in power upgrades at a key Melbourne facility.

The S&P/ASX 200 index eased 0.1% to 8,811.60 by 0040 GMT after closing 0.3% lower on Tuesday.

NEXTDC shares plunged as much as 44.8%, putting the stock on track for its worst-ever session and wiping more than A$3.1 billion ($2.17 billion) off its market value.

The selloff dragged the technology sector down 5.6% and added to concerns about whether electricity infrastructure can keep pace with the rapid growth of AI-related data-centre demand globally.

Rate-sensitive financials gained 0.3%, with the “big four” banks trading in positive territory.

Reserve Bank of Australia Deputy Governor Andrew Hauser said hawkish monetary policy was working to slow the economy, but the inflation outlook had still worsened, leaving him unsure whether interest rates would need to rise further.

Swaps imply nearly a 45% chance of a rate hike to 4.85% next month, up from 30% at the start of the week.

Among individual stocks, Woodside Energy fell as much as 1.3% in its biggest intraday drop in more than a week, after the country’s top independent oil and gas producer trimmed the top end of its annual production forecast.

Energy stocks fell 0.5%, tracking a dip in Brent crude prices, while miners slid 0.5% on softer copper prices.

Further south, New Zealand’s benchmark S&P/NZX 50 index fell 0.1% to 13,613.81.

Investors awaited the third-quarter inflation data, due on Thursday, for clues on the Reserve Bank of New Zealand’s next move at its October 28 meeting.