Australian shares edged lower on Thursday, led by gold and technology stocks, as strong wages data indicated that inflationary pressures were still running high and could prompt hawkish policy response from the central bank.
The S&P/ASX 200 index dipped 0.2% to 7,090.70 by 2358 GMT, after rising in the previous two consecutive sessions.
The benchmark closed 1.4% higher on Wednesday. Data on Wednesday showed that Australian wages rose at the largest rate on record due to a sharp increase in minimum wages, increasing chances of the Reserve Bank of Australia (RBA) lifting its inflation outlook and turning more hawkish.
The jobless rate still ticked higher as more people went looking for work, according to the data.
Earlier in the day, another data showed the country added 55,000 more jobs in October, beating Reuters forecast of 20,000.
In Sydney, gold stocks fell 1.1%, tracking easing bullion prices as a stronger dollar offset expectations of the US Federal Reserve being done with rate hikes.
Australia-listed shares of Newmont Corp lost 0.1%, while Evolution Mining and Northern Star Resources slid 2% and 1.7%%, respectively. Financials slid 0.2%.
Australia shares hit 8-week high after softer US inflation data
ANZ Group led losses in the sub-index, slumping by 2.9%, whereas Commonwealth Bank of Australia and Westpac were trading in the black.
Technology stocks also retreated 0.4%. Heavyweight Block’s ASX-listed shares fell 0.6%.
Miners fell 0.5%, with Rio Tinto and BHP Group slipping 0.1% and 0.4%, respectively.
Real estate stocks and health stocks shed 0.7% and 0.1%, respectively.
In corporate news, Karoon Energy on Thursday said it will acquire 46% stake in oil and gas fields in the Gulf of Mexico for $720 million to diversify its operations.
Shares of Galan Lithium soared 13.7% after the company announced signing of lithium chloride concentrate offtake agreement with miner Glencore.
AMP announced launch of a digital bank focussed on small business with a targeted investment of A$60 million over fiscal 2024-25. T
he investment manager’s shares were down 13.6%.
New Zealand’s benchmark S&P/NZX 50 index fell 0.5% to 11,301.79.
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