Australian shares slip below 9,000 level as AI regulation fears hit miners, tech

Australian shares slipped back below the 9,000 level on Friday, weighed down by miners and technology stocks as fears of tighter oversight of AI and data-centre investments following Democrats’ sweep of the US Congress triggered a selloff on Wall Street.

The S&P/ASX 200 index fell 0.8% to 8,994.50 points by 2346 GMT, on track for its biggest daily drop since October 1.

The benchmark rose 2.6% on Thursday, climbing above the psychologically important 9,000 mark.

Global sentiment weakened overnight after the Nasdaq recorded its steepest daily decline since the April 2025 “Liberation Day” selloff, as investors reassessed AI-related valuations and the regulatory outlook under a Democrat-controlled Congress.

Renewed attacks on tankers also lifted oil prices, further dampening risk appetite.

In Sydney, miners were set for their weakest session since March 19, shedding 4.4% as copper retreated from an AI-fuelled rally.

Sector giant BHP, which now earns a growing share of its profit from copper relative to iron ore, slumped 4.9%.

Rio Tinto dropped 3.9% and Fortescue fell 2.9%. Gold stocks slid 2.9% despite firmer bullion prices.

Technology stocks slid 2.6%, while real estate fell 1.3%.

Financials added 0.9% as investors rotated into defensive sectors.

The “big four” banks gained between 0.8% and 2.2%.

However, top investment bank Macquarie Group fell as much as 5.7% despite reporting its highest-ever first-half profit.

Separately, the country’s prudential regulator said it had identified that Macquarie in 2019 miscalculated the amount of capital required to support risks within its non-banking businesses. Consumer staples also rose 1.6%.

In New Zealand, the benchmark S&P/NZX 50 index slipped 0.9% to 13,965.94 points.