Australia: Shares fall as Woolworths slumps on bleak earnings view

[BENGALURU] Australian shares fell on Tuesday, dragged by Woolworths Group as it forecast lower first-half operating income from its local food business, while tech stocks tracked their US peers lower.

The S&P/ASX 200 index fell 0.4 per cent to 7,349.10 by 2351 GMT. The benchmark had closed 0.35 per cent higher on Monday.

Shares of Woolworths, the country's biggest supermarket chain, slumped as much as 10.6 per cent and were on track for their worst session in more than a decade, while rival Coles fell 5.5 per cent.

Tech stocks slipped 0.5 per cent, following a weaker finish on the Nasdaq as investors worried about the potential impact of the Omicron coronavirus variant ahead of a Federal Reserve meeting later this week.

Investors expect an increasingly hawkish tone out of the Fed's two-day meeting that wraps up on Wednesday. The central bank is expected to signal a faster wind-down of asset purchases, which could also usher closer a start to interest rate hikes.

Sector heavyweight Afterpay led losses on the tech sub-index, falling as much as 3.5 per cent to hit its lowest in more than six months.

Energy stocks eased 0.5 per cent, tracking a dip in oil prices on worries that rising coronavirus cases could hit fuel demand.

Sector majors Whitehaven Coal and Ampol were down 1.7 per cent and 1.1 per cent, respectively.

Financials were down 0.4 per cent, with the big four banks losing between 0.1 per cent and 0.8 per cent In New Zealand, the benchmark stock index slipped 0.4 per cent to 12,944.49, with industrials and financial stocks leading the losses.

REUTERS