Australia: Shares snap 7-day winning streak on Russia-Ukraine jitters

[BENGALURU] Australian shares snapped a 7-day winning streak to end lower on Thursday (Mar 31), as cautious investors refrained from placing huge bets on concerns over the Russia-Ukraine crisis and the prospect of aggressive rate hikes by the US Federal Reserve.

The S&P/ASX 200 index ended 0.2 per cent lower at 7499.6 points, as heavy losses in financials, technology and oil stocks offset a mining boost just before close. The index, however, ended higher for a sixth straight quarter.

Global risk sentiment was dull as hopes of a negotiated resolution to the Russia-Ukraine war were quickly diminished on news of Moscow's bombardment in the outskirts of Kyiv.

Markets also weighed on speculation that the US central bank may follow an aggressive approach in hiking interest rates, as it looks to control stubborn inflation.

Domestic technology stocks shed 2.2 per cent and were the top percentage decliners. The tech sub-index snapped 2 sessions of gains as it tracked overnight losses in its US peers.

ASX-listed shares of Block plunged 4.7 per cent while accounting software provider Xero lost 4.6 per cent.

While financials edged 1 per cent lower on the day, they added 3.7 per cent in March quarter. Australia and New Zealand Banking Group shed 1 per cent, while Commonwealth Bank of Australia and Westpac Banking slid 1.2 per cent and 1.1 per cent, respectively.

Energy stocks dived 1 per cent, but gained about 25 per cent in March quarter, following news that Washington may release up to 180 million barrels from its strategic petroleum reserve to sooth soaring crude prices.

Oil majors Santos and Woodside Petroleum shed between 1.4 per cent and 1.7 per cent.

The mining sub-index, which was single-handedly propping up the market until close, was overpowered by broad losses.

The sub-index added 1.8 per cent on the day as iron ore prices got a boost after China pledged to roll out policies to counter the pressures stemming from the recent Covid-19 surge.

Sector majors BHP Group and Rio Tinto added 2.3 per cent and 1.9 per cent, respectively, while Fortescue Metals Group soared nearly 4.5 per cent.

New Zealand's benchmark S&P/NZX 50 index ended 0.095 per cent higher at 12,110 points. REUTERS