Australia: Miners drive shares lower ahead of RBA policy meeting

[BENGALURU] Australian shares fell nearly 0.7 per cent on Monday, driven lower by mining heavyweights, though strong performances among technology stocks helped limit losses ahead of a monetary policy meeting by the Reserve Bank of Australia this week.

The S&P/ASX 200 index was down 41.1 points at 6,950.8 points, as of 1230 GMT. The benchmark closed 2.2 per cent lower on Friday.

The mining sub-index led the losses in the benchmark, slumping as much as 1.7 per cent in early trade, despite a surge in iron ore prices. Heavyweights Rio Tinto and rival Fortescue Metals Group dropped 2.7 per cent and 0.4 per cent, respectively.

BHP Group's unification of its dual listing stricture became effective earlier in the day, sending shares of the global miner down 2.3 per cent.

A Reuters poll showed that the country's central bank will end its bond-buying programme on Tuesday, but is expected to wait until November before it responds to inflationary risks with its first interest rate rise in over a decade.

The last time the central bank raised rates was in November 2010, when it lifted rates to 4.75 per cent.

Energy stocks slipped 0.4 per cent, while healthcare stocks also took a beating by dropping around 0.8 per cent.

The heavyweight financials sub-index fell 1 per cent, with the "Big Four" banks dropping as much as between 0.9 per cent and 2 per cent.

Medical glove maker Ansell plunged as much as 24 per cent after the company slashed its full-year EPS outlook due to supply chain disruptions.

Bucking the sombre mood, information technology firms gained as much as 2.7 per cent to notch their biggest intraday percentage gain since Jan 12, taking cues from a strong Nasdaq finish in the previous session.

Software firm Xero and Computershare rose between 0.9 per cent and 2.5 per cent.

New Zealand's benchmark S&P/NZX 50 index climbed 0.9 per cent, or 106.62 points, to 11,959.14. REUTERS