Australia: Shares end lower as bond yields rise on Powell's remarks

[SYDNEY] Australian shares closed weaker on Friday, dragged down by mining and high-flying tech stocks, as remarks from US Federal Reserve Chairman Jerome Powell failed to calm investors unnerved by the recent bond market volatility.

Wall Street indexes slumped overnight while Asian shares skid to one-month lows in early trade, as bond yields rose after Mr Powell said the increase in US treasury yields were not "disorderly" or one that could lead to intervention by the Fed to bring them down.

The S&P/ASX 200 index ended 0.7 per cent lower at 6,710.8 points. The benchmark index, however, recorded a weekly gain of 0.6 per cent, as strong fourth-quarter gross domestic product data earlier this week boosted hopes of a swift economic recovery.

"Looking forward, we can expect to see more volatility in both bond and equity markets," said James Tao, market analyst at CommSec.

"A lot will depend on whether or not the (Australian) central bank will assure investors about the things they can do in terms of bond-buying programme." Australian miners fell as much as 3.1 per cent to a near one-month low.

Global miners BHP Group and Rio Tinto dropped 2.2 per cent and 3.3 per cent, respectively.

Leading the decline in the mining sub-index, lithium-boron supplier Ioneer Ltd plunged 13.6% after a discounted share placement.

New Zealand's benchmark S&P/NZX 50 index fell 0.4 per cent to finish the session at 12,180.25 points.

REUTERS