Australia: Shares fall most in three months as US inflation data spurs selloff
AUSTRALIAN shares posted their sharpest fall in three months on Wednesday amid a broad sell-off, as a hotter-than-expected US inflation data dashed hopes of the Federal Reserve slowing down on its aggressive interest rate hikes in the coming months.
The S&P/ASX 200 index fell up to 2.8 per cent by 0016 GMT, posting its biggest drop since June 14, after four sessions of consecutive gains.
US consumer price data unexpectedly rose in August amid rising costs for rents and healthcare encouraging Fed to deliver a third 75 basis point rate hike next week to curb inflation, which is over the central bank’s target of 2 per cent.
Miners led the losses, dropping 2.8 per cent, with BHP down 1.7 per cent and Fortescue Metals falling 5.2 per cent in its sharpest decline in more than a week.
Rio Tinto lost nearly 3 per cent, after it announced teaming up with its biggest customer China Baowu Steel Group for developing an iron ore project in Western Australia, amid fraught ties between Australia and China.
Energy stocks skid 1.4 per cent on lower oil prices, with oil and gas major Woodside Energy and Santos dropping about 1 per cent and 1.6 per cent, respectively.
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Financials dropped up to 2.5 per cent with the ‘Big Four’ banks losing 1.7 to 2.7 per cent.
Technology stocks tracked their Wall Street peers lower and dropped nearly 4 per cent in their biggest fall since Aug 29.
ASX-listed shares of Block Inc fell 5.6 per cent, while Computershare rose 0.4 per cent and was the only stock on the ASX 200 which rose.
Weak bullion prices dragged gold stocks 4.4 per cent lower, making the sub-index the top percentage loser on the benchmark. Country’s largest gold miner Newcrest Mining slipped 3.5 per cent.
In New Zealand, the benchmark S&P/NZX 50 index fell 1.3 per cent to 11,610.05. REUTERS
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