Australia: Shares reverse early gains on recession fears

AUSTRALIAN shares reversed early gains on Monday, as investors fretted that aggressive interest rate hikes to bring down red-hot inflation would tip the global economy into recession.

The S&P/ASX 200 index fell 0.87 per cent to 6,417.6 by 0056 GMT, after opening 0.5 per cent higher on strong commodity prices.

The benchmark closed 1.2 per cent lower on Friday, wrapping up its worst month since June.

Interest rate-sensitive technology stocks fell 2.2 per cent, with software firm Novonix tumbling 4.8 per cent and Megaport skidding 4.6 per cent.

Financials dropped nearly 1 per cent, with three of the “Big Four” banks shedding more than 1 per cent each.

Energy was the only sector trading in positive territory with a 0.2 per cent gain, as oil prices jumped on Opec+ considering cutting output of up to 1 million barrels per day at a meeting this week to support the market.

Sector heavyweights Woodside Energy and Santos climbed 2.6 per cent and 3 per cent, respectively.

Global miner Rio Tinto was down 0.1 per cent after calling for the resignation of Peter Mansell, the chairman of Energy Resources Of Australia, to address the material cost and schedule overruns of the critical Ranger uranium mine.

ASX-listed shares of Janus Henderson declined 3.8 per cent after the London-based asset manager announced changes to its board, including the retirement of chairman Richard Gillingwater.

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Australia: Shares mark worst month since June on recession woes

Meanwhile, baby formula maker Bubs Australia rose nearly 3 per cent on seeking permanent access to the US market after the Food and Drug Administration (FDA) spelled out how companies that have been filling a temporary shortage can become long-term suppliers.

Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index fell 0.95 per cent to 10,960.5. REUTERS