Australia: Shares end lower as recession fears loom

AUSTRALIAN shares snapped two consecutive sessions of gains on Thursday (Oct 20), with mining and tech stocks leading the retreat, as investors turned their attention again to recession signs.

The S&P/ASX 200 index closed 1 per cent lower at 6,730.7. The benchmark rose 0.3 per cent on Wednesday.

Market players across the globe flocked towards safe-haven assets like the US dollar and Treasury notes, as fears of the US Federal Reserve sticking to its aggressive rate-hike path overshadowed optimism about US corporate earnings.

In Australia, data showing a disappointingly small rise in September jobs supported the case for a slower rate hike by the Reserve Bank of Australia (RBA) in November.

“A softer labour market also increases the likelihood of a December pause by the RBA, but the Q3 CPI data, which will be out next Wednesday, will be an important factor here,” analysts from ANZ Research said.

Miners led laggards, shedding 2.5 per cent as iron ore prices in China dipped on supply-side pressures. Sector majors Rio Tinto, BHP Group and Fortescue Metals fell between 1.9 and 3.9 per cent.

Technology stocks followed their Nasdaq peers and closed down 3.8 per cent. Accounting services provider Xero and ASX-listed shares of Block dropped 5.2 per cent and 7.9 per cent, respectively.

Energy stocks jumped about 3.1 per cent, even as oil prices were mixed in Asian trade.

Woodside Energy emerged as one of the top gainers on the bourse with a 6.2 per cent rise, after the company raised its annual production forecast and posted record quarterly revenue, as it benefited from a jump in energy prices and its merger with BHP Group’s petroleum assets.

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Australia: Shares slip as miners weigh; Woodside climbs

New Zealand’s benchmark S&P/NZX 50 index fell about 0.8 per cent to 10,832. REUTERS