Australia: Shares slump more than 2% amid broad sell-off

AUSTRALIAN shares on Tuesday hit their lowest in over three months, dragged by mining and commodity stocks, as worries about the global economic impact of extended Covid-19 curbs in China and tightening monetary policies spurred a broad-based sell-off. The S&P/ASX 200 index dropped 2.5 per cent to 6,943.80 by 0033 GMT, after hitting their lowest since Jan. 31 earlier in the session. The benchmark closed 1.2 per cent lower on Monday. Global financial markets have been spooked by concerns over interest-rate hikes, with stringent Covid-19 lockdowns in China slowing April export growth in the world’s second-largest economy and fuelling recession worries. In Asia, Japan’s Nikkei was down 1.89 per cent and S&P 500 E-minis futures were down 0.39 per cent. In the domestic market, miners led the losses with their 5 per cent slide and touched their lowest since December 2021. Sector heavyweights BHP Group, Rio Tinto and Fortescue Metals Group were down between 4.2 per cent and 6.1 per cent. Iron ore futures plunged as much as 7 per cent Covid-19 curbs in China prompted traders to be cautious and fuelled concerns over global demand. Energy stocks slid 4.5 per cent after oil prices sank. Woodside Petroleum and Santos fell 3.1 per cent and 4.1 per cent, respectively. Gold stocks declined 4.4 per cent in their third session of losses after gold prices extended losses after a surge in the dollar to two-decade highs harmed the appeal of non-yielding bullion. Technology stocks tracked a sharp overnight fall in the tech-heavy Nasdaq Composite index, which closed at its lowest level since November 2020. The Australian technology sub-index fell as much as 5.2 per cent to hit its lowest in nearly two years with all other sectors also trading in negative. New Zealand’s benchmark S&P/NZX 50 index dropped 1.7 per cent to 11,186.36. REUTERS