Australian shares edged lower on Friday, with gold and technology stocks posting the biggest intra-day losses, as higher June employment data raised expectations of an interest rate hike by the country’s central bank next month.

The S&P/ASX 200 index fell 0.4% to 7,298.40 by 0034 GMT.

The benchmark ended flat in the previous session. Data on Thursday showed that employment in Australia beat expectations for a second straight month in June, rising by 32,600 from May, when it had surged by a disproportionately strong 76,600.

A gauge of global equities slid overnight after data once again highlighted persistent US labor market strength, suggesting the Federal Reserve will keep rates higher for longer to curb inflation.

In Sydney, gold stocks slid as much as 3.7% to record their biggest intraday fall since May 12 as bullion prices slipped from a two-month high overnight.

The sub-index has shed 6.4% this week and is set to lodge its worst week since Sept. 16, 2022.

Shares of Newcrest Mining and Northern Star Resources fell 4.9% and 1.6%, respectively.

Miners, financials lift Australian shares ahead of June employment data

Technology stocks slipped as much as 2.8%, their biggest intraday fall since July 7, after the Nasdaq closed lower overnight.

ASX-listed shares of Block and Wisetech Global dipped 2.6% and 1.8%, respectively.

Financials fell 0.5% and were set to snap an eight-session rally.

Three of the ‘big four’ banks were trading in the negative territory.

Local miners fell 0.4%, declining for a fifth consecutive session despite a rise in iron ore prices.

Heavyweights Rio Tinto and BHP Group, however, jumped 0.2% and 0.3%, respectively, while Fortescue Metals Group slipped 0.4%.

Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index fell 0.1% to 11,920.29. It has shed 0.1% this week.