Australia: Shares close lower ahead of US payrolls report
AUSTRALIAN shares closed lower on Friday (Sep 2) and recorded their worst week since mid-June, as growing fears of aggressive rate hikes in the US soured risk sentiment ahead of a key US jobs report.
The S&P/ASX 200 index settled down 0.3 per cent at 6,828.7.
The benchmark fell 3.9 per cent this week, the biggest such decline in 2 1/2 months. Intensified tightening of monetary policies globally and weaker commodity prices have hit the resource-heavy bourse.
“This is what I’d call a nervous market,” said Brad Smoling, managing director at Smoling Stockbroking.
Market participants look ahead to US August non-farm payroll data due later in the day. Investors may not like a strong number if it supports a continuation of aggressive rate hikes from the Federal Reserve.
Australia-focused investors also await a central bank rate decision next week. Economists polled by Reuters expect another half point hike by the Reserve Bank of Australia, to curb soaring inflation.
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Mining stocks fell 2.2 per cent on Friday, hurt by weaker iron ore and base metal prices on China demand woes. The sub-index fell nearly 11 per cent in the week, posting its biggest drop since August 2021.
Separately, minority shareholder of Turquoise Hill Resources said they do not support Rio Tinto’s sweetened offer to buy the rest of the Canadian miner for US$3.3 billion.
BHP Group and Fortescue Metals Group fell 2.1 per cent and 2.5 per cent, respectively, while Rio dropped to its lowest level since November 2021.
Gold stocks fell 0.6 per cent to their lowest since October 2018, underpinned by weaker bullion prices.
Financials were among the better performers, with “Big Four” banks adding 0.5 to 0.9 per cent.
Building materials maker James Hardie named Aaron Erter as its new chief executive officer. Shares closed up 0.1 per cent.
New Zealand’s benchmark S&P/NZX 50 index closed 0.2 per cent higher at 11,628.25. The index rose 0.2 per cent over the week. REUTERS
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