Australian shares fell in broad-based sell off on Wednesday, tracking declines in global equities as fears of higher-for-longer interest rates kept risk sentiment in check ahead of the key local inflation data.
The S&P/ASX 200 index fell 0.4% to 7010.70 by 0057 GMT.
The benchmark fell 0.5% on Tuesday.
Investors are keenly awaiting Australia’s August consumer price inflation print, due at 0130 GMT, for insights on the Reserve Bank of Australia’s (RBA) monetary policy path.
“The inflation rate should push back from the July 4.9% YoY rate to a little over 5%,” analysts at ING said.
“While this does not immediately threaten the market’s view that the RBA has peaked in its rate cycle, a few more results like this, plus some economic resilience may spur thoughts that there is still one more hike to come.”
Markets globally continued to digest last week’s indication from the US Federal Reserve that it would keep rates higher for longer than investors had previously expected.
In Sydney, gold stocks fell 1.5% to a more than one-month low as bullion retreated overnight.
Sector majors Newcrest Mining and Northern Star Resources fell 1.7% and 1.5%, respectively.
Healthcare stocks also retreated 1.3%, with biotech major CSL falling 2.2%. Rate-sensitive financial stocks fell 0.1%.
Miner and gold stocks drag Australian shares lower
Technology stocks tracked Wall Street losses to slide 0.8%, and energy stocks also fell 0.3%.
Star Entertainment Group topped losses on the benchmark index, falling as much as 19.7% to hit its all-time low.
The stock resumed trading after completing a discounted A$750 million ($479.63 million) equity raising. Bucking the trend, heavyweight mining stocks rose 0.1%.
BHP Group and Rio Tinto gained 0.3% each.
New Zealand’s benchmark S&P/NZX 50 index fell 0.6% to 11272.19.
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