Australia: Shares set to snap third weekly gain on tech slump

[BENGALURU] Australia shares fell on Friday, poised to snap the third straight weekly gain, weighed down by tech stocks tracking a tepid overnight session at Wall Street, with materials-related sectors dragging the bourse further on weak commodity prices.

The S&P/ASX 200 index lost 0.6 per cent to 7432.70 points in an all-sector sell-off by 2328 GMT. The benchmark is down 0.3 per cent for the week so far.

All major indexes on Wall Street closed lower, with the tech-heavy Nasdaq leading losses after a three-day rally, amid talks signalling that the US Federal Reserve would raise rates as early as in March.

Back home, fresh Covid-19 infections continued to be at record levels. Authorities, however, were forced to ease quarantine rules for more workers as the surge drove up hospitalisation rates and added strain on supply chains.

Tech stocks led losses on the benchmark, losing as much as 1.8 per cent to hit their lowest mark in more than seven months, with index heavyweight Afterpay falling more than 7.5 per cent to its lowest since September 2020.

The metals and mining sub-index dipped 0.5 per cent, with iron ore majors BHP Group and Fortescue Metals down 1.3 per cent and 1.6 per cent, respectively.

Financial stocks dipped 0.2 per cent, dragged by Australia and New Zealand Banking Group, which lost 0.7 per cent.

Gold miners followed suit, slipping 0.4 per cent on weaker bullion prices over uncertainty about Fed's interest rate hikes.

Travel- and leisure-related stocks took a fall as rising coronavirus infections dampened demand. Qantas Airways fell 3.6 per cent after the carrier decided to cut its third-quarter capacity by about a third.

Star Entertainment posted losses of more than 1 per cent after Australia's financial crime regulator expanded its money laundering probe at the company's casino in Sydney.

New Zealand's benchmark S&P/NZX 50 index traded up 0.2 per cent to 12,827 points.

Motorhomes seller Tourism Holdings added over 3.2 per cent in its best jump since mid-December to be one of the biggest gainers on the bourse.

REUTERS