Australia: Shares slip as recession worries weigh on commodities

  AUSTRALIAN shares tumbled on Friday with local miners and energy stocks leading losses, as rising concerns about a recession extended weakness among the prices of commodities.

The S&P/ASX 200 index fell 0.11 per cent to 6,521.1 points by 0051 GMT, but was up 0.7 per cent for the week.

The benchmark ended 0.31 per cent higher on Thursday. Domestic investors sought to counter declines in commodities against a broader global rally led by Wall Street overnight. Nevertheless, they had a cautiously positive week.

Energy stocks skidded as much as 2.5 per cent to be the biggest laggards on the main index, after oil prices dropped by nearly US$2 a barrel overnight after another round of remarks from Federal Reserve Chair Jerome Powell fanned worries US interest rate hikes would slow economic growth.

Sector heavyweights Woodside Energy and Santos declined 3 per cent and 3.1 per cent, respectively, with Santos hitting its lowest since Feb 25.

Mining stocks fell 1.9 per cent after prices of base metals tumbled overnight amid concerns about a global recession.

Sector heavyweights BHP Group, Rio Tinto and Fortescue dropped between 2.2 per cent and 2.5 per cent, with BHP and Rio hitting their lowest since May 10.

Shares in Vulcan Energy surged 24.6 per cent, set to mark their best day since Jan 19, after the lithium miner announced it had brought European automaking giant Stellantis on board as its second-largest shareholder.

Qantas Airways was up 1.6 per cent after the airlines group said its net debt was expected to fall to around A$4 billion (S$3.84 billion) by June 30 and that it anticipates a return to profit in financial year 2023.

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New Zealand’s benchmark S&P/NZX 50 index did not trade on account of a public holiday. REUTERS