Australia: Gold, tech stocks drag shares lower

[BENGALURU] Australian shares fell on Wednesday, dragged down by losses in gold stocks due to weakness in bullion prices, while technology heavyweights tracked their US peers lower.

The S&P/ASX 200 index fell 0.5 per cent to 7,344.80 by 2343 GMT, after closing almost flat in the previous session.

Gold stocks dropped 2.4 per cent after bullion prices fell nearly 1 per cent overnight on expectations for an early interest rate hike by the US Federal Reserve.

Evolution Mining and Northern Star Resources were the top two losers in the sub-index, shedding 4.9 per cent and 3.3 per cent respectively.

Tech stocks fell as much as 1.9 per cent, tracking the Nasdaq's weaker finish overnight as a jump in US producer prices solidified expectations for sooner-than-expected interest rate hikes.

Sector major Afterpay dropped 2.4 per cent, while Altium was trading 2 per cent lower.

Energy stocks lost 0.3 per cent after the International Energy Agency said the Omicron coronavirus variant was set to dent global demand recovery.

Financials rose 0.4 per cent with the big four banks gaining between 0.7 per cent and 0.1 per cent.

In corporate news, retail conglomerate Wesfarmers said it would not support a buyout bid from grocer Woolworths for Australian Pharmaceutical Industries, in a bid to thwart Woolies' rival approach for the drugstore chain.

In New Zealand, the benchmark stock index fell 0.6 per cent to 12,847.46 and was on track for a second straight session of losses.

The Reserve Bank of New Zealand will continue to raise the official cash rate and expects that it will eventually go above its neutral rate, Governor Adrian Orr said.

REUTERS