Australia: Shares hit nearly 1-year low as commodity, banking stocks weigh

AUSTRALIAN shares fell on Monday to hit their lowest level in nearly a year, weighed down by losses in heavyweight commodity and financial stocks, while investors awaited local inflation data due on Wednesday for interest rate clues.

The S&P/ASX 200 index declined 0.7 per cent to 6,855.7 by 1152 GMT, hitting its lowest level since Nov 04, 2022, with traders also closely monitoring the developments in the Middle East conflict.

Sentiment was also dented by last week’s China data that showed its crude steel output fell 5 per cent in September from August in a surprise to the market.

Mining stocks led the decline on the benchmark index, falling 1.7 per cent to their lowest level since Oct 6. BHP Group and Rio Tinto slid more than 2 per cent each.

Energy stocks slumped 1.3 per cent and were on track for their worst day since Oct 3. Shares of Woodside Energy and Santos fell more than 1 per cent each.

Financial stocks retreated 0.4 per cent, with the “big four” banks sliding between 0.4 per cent and 0.8 per cent.

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Technology stocks fell 0.4 per cent in what could be their fourth consecutive session of declines and hit their lowest level since May 18.

Among individual stocks, South32 fell as much as 3.6 per cent to hit its lowest level since Sept 28 after it posted an 18 per cent drop in its first-quarter metallurgical coal output.

Treasury Wine Estates said it was well placed to rebuild its business in China, should tariffs by China of the country’s wine be removed, sending its shares up as much as 5.3 per cent.

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Shares of Calidus Resources rose as much as 27 per cent after the company said Chilean lithium miner SQM would buy a 30 per cent stake in a Pilbara lithium project from its joint venture partner Haoma Mining.

Markets in New Zealand were closed for a public holiday. REUTERS