Australia: Shares fall on Federal Reserve rate hike jitters

AUSTRALIAN shares fell in early trade on Friday, as stronger-than-expected US economic data cemented fears of an aggressive interest rate hike from the Federal Reserve next week.

The S&P/ASX 200 index had declined 0.7 per cent by 0030 GMT, shedding about 1.5 per cent so far this week.

All sectors but financials were trading in negative territory on Friday.

Data showed US retail sales unexpectedly rebounded in August, while the number of people filing for new claims for unemployment benefits fell to its lowest in more than three months.

In Australia, the central bank flagged more interest rate hikes ahead but said it would be appropriate to slow the pace at some point.

Energy stocks led the declines with a 2 per cent drop after oil prices slumped to a one week-low overnight on expectations of weak global demand.

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Oil and gas majors Woodside Energy and Santos fell 1.7 per cent and 2 per cent, respectively.

Miners declined nearly 2 per cent, with iron ore behemoths BHP and Rio Tinto shedding about 1 per cent each.

Technology stocks slid 0.3 per cent, tracking losses in their Wall Street peers. Software maker WiseTech Global dropped 3.1 per cent to lead the losses on the sub-index, while ASX-listed shares of Block Inc gained 0.2 per cent.

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Australia: Shares end higher on strong energy stocks, job data cheer

Gold stocks tumbled 3.2 per cent and were the top percentage losers after bullion prices hit their lowest in more than two years on Thursday.

Newcrest Mining, the country’s largest gold miner, lost 2.2 per cent, while Northern Star Resources fell nearly 4 per cent.

Financials were the only gainers, climbing 0.2 per cent. The “big four” banks advanced between 0.1 per cent and 1.5 per cent.

New Zealand’s benchmark S&P/NZX 50 index fell 0.2 per cent to 11,634.5. REUTERS