Australia: Shares extend losses for fourth day on US inflation threat

[BENGALURU] Australian shares on Thursday extended losses for a fourth session, with healthcare and energy firms weighing the most, as growing US inflationary risks stoked concerns of an earlier-than-expected policy normalisation by the Federal Reserve.

The S&P/ASX 200 index was down 0.6 per cent at 7,379.00, as of 0052 GMT.

All three major US stock indexes ended in negative territory overnight, extending their losses and adding to Tuesday's sell-off as surging consumer prices raised worries of a protracted wave of red hot inflation.

Aussie healthcare stocks were the top percentage losers in the benchmark, declining up to 1.6 per cent to mark their worst session since mid-October.

Biotech firm CSL declined more than a percent while hospital operator Ramsay Health Care lost 7.3 per cent after it recorded a drop in its first-quarter earnings.

Energy sector fell as much as 2.4 per cent, extending losses for a third straight session, with index heavyweights Woodside Petroleum and Santos shedding more than 3 per cent each.

Oil prices slumped overnight, hit by a surge in the dollar after US President Joe Biden said his administration was looking for ways to reduce energy costs amid a broader acceleration in inflation.

Local tech stocks were also among the top drags, losing up to 1.7 per cent, with buy-now-pay-later giant Afterpay and accounting software maker Xero shedding 1.7 per cent and 4.4 per cent, respectively.

Among gainers, heavyweight miners advanced 1.2 per cent, recovering from a near 2 per cent drop in the previous session. Global miners BHP Group, Rio Tinto and Fortescue Metals Group gained between 1 per cent and 3.5 per cent.

Australian gold stocks rose 2.3 per cent as surging US inflation burnished bullion's appeal as an inflation hedge, sending prices to a five-month high on Wednesday.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index added 0.2 per cent to 13,044.02.

Elsewhere, S&P 500 E-minis futures were mostly flat, while Japan's Nikkei was down 0.19 per cent at 29,051.58.

REUTERS