Australia: Banks, miners drag shares lower on Friday

AUSTRALIAN shares fell on Friday, dragged down by losses in banking and mining stocks following an overnight retreat in Wall Street, while Insurance Australia Group gained after posting strong annual results.

The S&P/ASX 200 index was down 0.5 per cent at 7,034.10 by 0035 GMT. The benchmark was on track to rise 0.1 per cent this week.

Elsewhere, Japan's Nikkei advanced 2.2 per cent to 28,425.53, while S&P 500 E-minis futures were flat.

The Nasdaq and S&P 500 closed lower overnight on the realisation the Federal Reserve still needs to aggressively boost interest rates to fully tame rising consumer prices despite fresh evidence of cooling inflation.

Financials fell 0.3 per cent, with Commonwealth Bank of Australia declining 1.1 per cent among the so-called "Big Four" banks.

Miners shed 0.4 per cent even as iron ore prices advanced overnight. However, the sub-index was set to gain 2.5 per cent for the week.

Fortescue Metals Group fell 0.2 per cent, while Rio Tinto added 0.6 per cent and BHP Group was flat.

Gold stocks declined 1 per cent as bullion prices edged lower overnight. The country's major gold miners Newcrest Mining and Northern Star Resources fell 1.1 per cent and 0.2 per cent, respectively.

The technology sub-index slipped 1.6 per cent to hit its lowest since Aug. 2. Xero and WiseTech Global fell 2.6 per cent and 2.2 per cent, respectively.

Insurance Australia Group rose 1.5 per cent to hit a near three-month high, after the general insurer posted an annual profit from a loss a year ago.

On the upside, firm crude prices pushed energy stocks up 0.4 per cent, with Woodside Energy and Santos advancing 1.6 per cent and 0.4 per cent, respectively.

New Zealand's benchmark S&P/NZX 50 index edged 0.1 per cent higher to 11,766.61.

A Reuters poll found that the country's central bank will stick to its hawkish stance and deliver a fourth straight half-point rate hike on Wednesday. REUTERS