Australian and New Zealand shares fell sharply on Thursday as investors sold off equities globally in search of safety after a drop in a US bond yield curve highlighted the risk of recession.
The S&P/ASX 200 index sank 2.9% to 6,408.1 points, its lowest level since early June. The benchmark had managed a 0.4% gain on Wednesday after US President Donald Trump delayed tariffs on some Chinese imports, easing some fears over the escalating US-China trade war.
Australia's Big Four banks - Commonwealth Bank of Australia, Westpac Banking Corp, National Australia Bank and Australia and New Zealand Banking Group - each slumped around 3%.
Australian miners, which are highly dependent on continuous global growth for demand, were firmly in the red.
BHP Group and Rio Tinto dropped 2.8% and 2.7%, respectively. Qantas Airways dropped 4.6% amid the wider sell-off, after Boeing said it was facing engine-related delays on its 777X wide-body planes that may hamper Qantas' crucial 21-hour non-stop Sydney-London flights in 2023.
New Zealand's benchmark S&P/NZX 50 index closed 1.3% lower at 10,704.11.
Dairy product maker a2 Milk slipped 2.1% and utilities form Meridian Energy declined 1.9%.
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