Australia: Shares reverse course to drop on US inflation data
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[BENGALURU] Australian shares gave up early gains to trade lower on Friday, as sentiments were dampened by red-hot US inflation data that led the country's stocks to slide overnight, with soft commodity prices pressuring local energy and gold stocks.
The S&P/ASX 200 index was down 0.3 per cent at 7,108.80 by 0000 GMT. The benchmark was on track for a 0.2 per cent weekly fall, if losses hold.
A four-decade high inflation data from the US cemented expectations that its Federal Reserve would hike key interest rates at the conclusion of next week's monetary policy meeting to prevent the economy from overheating.
Back home, Australia's top central banker on Friday cautioned borrowers it would be prudent to prepare for a rise in interest rates this year with inflation set to increase due to the recent surge in global commodity prices.
Losses in tech stocks weighed on the benchmark, down 2.2 per cent, tracking a negative finish in its Wall Street peers.
Australia-listed shares of Block Inc fell 2.7 per cent to the bottom of the sub-index.
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Oil prices fell, dragging the energy sub-index down as much as 0.8 per cent. Fuel refiner Viva Energy slipped 0.9 per cent, while sector major Woodside Petroleum lost 1 per cent.
Financials reversed early gains to fall 0.4 per cent, breaking a three-day rally. However, top banks were trading 0.3 per cent and 0.9 per cent higher.
Australian miners were the only bright spot, up about 2 per cent, and notching their sharpest gain since March 3 despite declining iron ore prices.
The country's top miners Rio Tinto, BHP Group and Fortescue Metals gained between 2.1 per cent and 3 per cent.
Separately, Nickel Mines was the top gainer on the benchmark with a 5.3 per cent jump. The company announced a withdrawal of its A$18 million (S$18 million) share purchase plan citing market conditions.
New Zealand's benchmark S&P/NZX 50 index fell 0.2 per cent to 11,901.04 points and was on track to drop about 2 per cent for the week. If losses hold, the benchmark is on track to suffer its worst week in six. REUTERS
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