Australia: Shares hit 2-week low, energy top laggard

[BENGALURU] Australian shares closed lower on Tuesday (Apr 12), in line with broader Asia as investors awaited US inflation data that is expected to reinforce the Federal Reserve's stance of aggressive policy normalisation to contain broadening pricing pressure.

The S&P/ASX 200 index slipped 0.4 per cent to a 2-week low of 7,454, with all sectors except gold in negative territory.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.2 per cent as investors braced for likely red-hot US inflation data that is expected to show prices last month increased by the most in 16 1/2 years.

Energy stocks fell 0.6 per cent despite a rise in oil prices, with sector majors Woodside Petroleum and Santos shedding 0.2 per cent and 0.8 per cent, respectively.

"Oil prices have not gone over the crucial US$100 per barrel mark as yet... So, I don't think it's a big enough move for energy stocks to climb at this stage," said Brad Smoling, chief executive officer of Smoling Stockbroking.

Miners eased 0.2 per cent as iron ore prices fell sharply on concerns that Covid-related restriction measures in top consumer China would slow the economy's recovery.

Index heavyweights BHP Group fell 0.1 per cent, while Fortescue Metals Group was flat. Lynas Rare Earth closed lower after rising as much as 2.1 per cent on record quarterly revenue.

Technology stocks tracked their US peers lower and closed down 0.9 per cent, with Xero and WiseTech Global shedding 0.6 per cent and 2.2 per cent respectively.

Financials inched lower 0.2 per cent, with the "Big Four" banks slipping between 0.2 per cent and 1 per cent. Pendal Group lost 2.6 per cent after it said asset manager Perpetual's A$2.4 billion (S$2.43 billion) takeover offer "significantly undervalued" it.

New Zealand's benchmark S&P/NZX 50 index fell 0.4 per cent to 11,899.2. REUTERS