Australia: Shares sink on tech sell-off after US inflation data; miners shine

[BENGALURU] Australian shares lost ground on Friday as technology stocks were sold off after a hot US inflation reading furthered the cause for a more aggressive approach to raising interest rates, while heavyweight miners limited losses.

The S&P/ASX 200 index fell 0.5 per cent to 7,249.5 by 2328 GMT, snapping a three-day winning streak. The benchmark rose 0.3 per cent on Thursday, and is on course for a 1.7 per cent gain this week.

The technology sector slid 2.8 per cent, tracking an overnight sell-off on Wall Street's tech-heavy Nasdaq Composite Index on the inflation number.

Australia-listed shares of Block Inc retreated 5.2 per cent, while Xero and WiseTech Global shed about 2.9 per cent each.

Separately, Reserve Bank of Australia Governor Philip Lowe again pushed back on calls for a rate hike, saying moving on interest rates too early could put the country's employment goals at risk, and that the board was prepared to be patient.

Insurance Australia Group rose 2.1 per cent on Friday after higher natural peril claims drove its half-year cash earnings down 62 per cent but still beat estimates.

Other financial stocks fell 0.5 per cent, with the country's four largest lenders giving up between 0.2 per cent and 1.1 per cent.

Bucking the sombre mood, heavyweight miners limited losses on the benchmark with their 0.9 per cent climb, led by BHP Group ticking up over 2 per cent, aided by a firm iron ore price.

Rio Tinto and Fortescue Metals Group also added about 1.4 per cent each.

New Zealand's benchmark S&P/NZX 50 index fell 1 per cent to 12,297.81 by 2328 GMT. REUTERS