Australian shares ended lower on Thursday, snapping an eight-day winning streak, as heavy losses in financials and energy stocks weighed on the benchmark index after the central bank flagged risks of global credit crunch on the banking sector.
The S&P/ASX 200 index fell 0.3% to close at 7,219.0 points. The benchmark closed marginally higher on Wednesday.
The Reserve Bank of Australia (RBA) said domestic banks were well-positioned to weather stress in the global financial system, although it would see a global tightening in lending and prove a headwind to economic growth.
The RBA on Tuesday left its cash rate unchanged at 3.6%. Markets are now pricing in an end to rate hikes and a cut by the year-end.
Investors were inclined to take money off the table after recent strong gains, with trading in many global markets closed for Good Friday holiday, when potentially pivotal US monthly payrolls data is due.
“There is a bit of cautious trading going on ahead of payrolls data that could add some volatility heading into the weekend and is contributing to some weakness in the local bourse today,” said Tim Waterer, analyst at Kohle Capital Markets.
Australian shares little changed; NZ falls on bigger rate hike
Energy stocks declined 0.7% as oil prices slumped on concerns over a potential global recession and demand reduction. Tracking losses in tech-heavy Nasdaq, Australian technology stocks tumbled 2.1%.
ASX-listed shares of Block Inc fell 1.6% while Xero dropped 2.6%.
Gold stocks advanced 0.8% to their highest level in about a year, with Newcrest Mining, the country’s largest gold miner, climbing 0.9%.
Heavyweight miners lost 0.6% with iron ore giants BHP Group, Rio Tinto, and Fortescue Metals Group down between 0.1% and 0.4%.
In New Zealand, the benchmark S&P/NZX 50 index was flat at 11,870.08, a day after central bank unexpectedly raised its cash rate by 50 basis points to a more than 14-year high of 5.25%.
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