Australia: Shares slip ahead of RBA rate decision, tech top drag

[BENGALURU] Australian shares fell on Tuesday ahead of a central bank rate decision, with technology and healthcare stocks leading the decline after Wall Street closed sharply lower overnight on concerns over rising bond yields.

The benchmark ASX 200 index was down 0.4 per cent by 0007 GMT after declining as much as 0.6 per cent to 7,231.9.

The S&P 500 fell 1.8 per cent on Monday to its lowest since mid-July and the tech-heavy Nasdaq dropped 2.6 per cent on renewed US-China trade tensions and inflation concerns.

Australian tech stocks fell 4.01 per cent in their biggest intraday drop since May 13. Buy-now-pay-later giant Afterpay and WiseTech Global were the worst performers on the index, losing 6.8 per cent and 4.4 per cent respectively.

Meanwhile, the Reserve Bank of Australia is not expected to change its cash rate of 0.10%, where it has been since a cut last November, a Reuters poll showed.

Metals and mining stocks shed 0.4%, led by a 5.6% drop in Ioneer Ltd and a 4.6% fall in Australian Strategic Materials (Holdings) Ltd. Global miners BHP Group and Fortescue Metals Group lost 0.1% and 1.6%, respectively.

Bucking the trend, energy stocks rose 2.5 per cent after oil prices jumped to a three-year peak on Monday, with heavyweights Oil Search and Santos leading the rise.

Gold miners jumped 1.7 per cent and were on track for a fifth consecutive session of gain, as bullion prices rose overnight to a more than one-week high. Tietto Minerals jumped 10.5 per cent, while Auteco Minerals Ltd gained 9.3 per cent.

In New Zealand, the benchmark S&P/NZX 50 index fell 0.8 per cent to 13,236.7.

New Zealand business confidence dropped in the third quarter as the latest Covid-19 lockdown hurt sentiment, a private think tank said.

REUTERS