Australian shares fell on Friday, dragged down by real estate and consumer stocks, after stronger-than-expected May retail sales growth strengthened the case for another rate hike.

The S&P/ASX 200 index fell 0.2% to 7,178.0 by 0030 GMT in lacklustre trading.

The benchmark ended flat on Thursday.

Australian retail spending rebounded last month as consumers were tempted by online sales events and promotional discounting, a sign of resilience in consumption. Consumer stocks fell 0.6%, with Woolworths and Coles dropping 0.6% and 0.5%, respectively.

Heavyweight financials slipped 0.2%, with National Australia Bank down 0.3%.

Real estate stocks fell more than 1%, with Goodman Group and Mirvac Group shedding 1.2% and 1.1%, respectively. Healthcare and technology stocks fell 0.3% each.

Miners were the top gainers on the benchmark, rising 0.1% after iron ore prices jumped to a 15-week high on Thursday.

Mining behemoths BHP Group and Rio Tinto gained 0.4% and 0.2%, respectively.

Gold stocks rose 0.5% on steady bullion prices.

Newcrest Mining and Northern Star Resources gained 1.2% and 0.9%, respectively.

Australian shares snap 4-day losing streak as banks and miners gain

Energy stocks inched higher 0.1% on firmer crude oil prices.

Woodside Energy gained 0.2%, while Santos fell 0.1%.

Among individual stocks, Vulcan Energy Resources climbed 0.5% after the company promoted its deputy CEO as the top boss.

Bubs Australia dropped as much as 8.3% after the dairy firm cut its full-year revenue forecast for China operations on disappointing sales.

New Zealand’s benchmark S&P/NZX 50 index was flat at 11,803.1.