Australia: Ex-dividend trading, global selling trip shares

[BENGALURU] Australian shares fell on Thursday as renewed worries about rising US bond yields soured risk sentiment globally and a slew of local index heavyweights including Rio Tinto traded ex-dividend.

Overnight, major Wall Street indices closed sharply lower after investors sold high-flying technology stocks, while MSCI's ex-Japan Asian-Pacific shares lost 1.7 per cent in early trade on Thursday.

"The situation in the local market right now is related to the US treasury market," said Brad Smoling, managing director at Smoling Stockbroking.

"This seems to be a big concern and the Fed has to step in to do some yield curve control."

The S&P/ASX 200 index ended 0.8 per cent lower at 6,760.7, weighed down by miners Rio Tinto and BHP Group and supermarket chain Woolworths Group as they traded ex-dividend.

Tech stocks fell 1.5 per cent, tracking a sell-off in US peers. Buy-now-pay-later firm Afterpay slid more than 2 per cent, while Xero shed 3 per cent.

Healthcare stocks fell 3.5 per cent, hitting their lowest level in nearly a year. Sector heavyweight CSL, which relies heavily on revenues from the United States, dropped as much as 5.8 per cent.

Bucking broader market weakness, the financial sub-index climbed more than 1 per cent to its highest in over a year. The "Big Four" banks firmed between 0.4 per cent and 2 per cent, while QBE Insurance gained 3 per cent.

Financials have added about 5 per cent this week, buoyed by data showing faster-than-expected economic growth, reaffirmation by the central bank of its accommodative stance and extension of a bond-buying programme.

New Zealand's benchmark S&P/NZX 50 index closed down 1 per cent, with utility, consumer and healthcare stocks weighing the most.

Dairy firm Synlait Milk dived more than 10 per cent to hit a near four-year low, after withdrawing its 2021 earnings forecast.

REUTERS