Australia: Shares subdued in choppy trade; New Zealand down

AUSTRALIAN shares drifted within a tight range on Tuesday as losses in technology and financial stocks offset gains in the resources sector, after recession worries increased due to warnings from Apple Inc and Goldman Sachs.

The S&P/ASX 200 index was down 0.1 per cent at 6,680.2 by 0055 GMT. The benchmark rose 1.2 per cent on Monday.

Goldman warned it may slow hiring and cut expenses after reporting a 48 per cent slump in quarterly profit, while a Bloomberg report said Apple was planning to do the same for next year.

The developments dragged Wall Street lower overnight. Investors are also awaiting minutes of the Reserve Bank of

Australia’s July meeting for more clarity on its policy tightening stance. Domestic technology stocks led losses with a near 2 per cent drop, following their peers’ slide on the Nasdaq Composite Index.

Xero and ASX-listed shares of Block Inc declined 3.6 per cent and 2.3 per cent respectively. Financials slipped 0.4 per cent, with two out of “Big Four” banks falling 0.2 per cent and 1.3 per cent respectively.

However, energy stocks were one amongst the gainers, jumping as much as 4.2 per cent, seeing its best day since June 8 after oil prices jumped.

Miners gained 1.3 per cent as iron ore prices in China crossed US$100 per tonne, after Asia’s largest economy sought to ease concerns in the trouble-ridden property sector.

Index heavyweights Rio Tinto and Fortescue Metals Group climbed 1.5 per cent and 2.1 per cent, respectively.

SEE ALSO

Australia: Shares rise on Wall Street rally, Suncorp jumps on A$4.9b ANZ deal

BHP Group joined Rio Tinto in warning about labour shortages and inflationary pressures. Its shares, however, rose about 1.9 per cent.

New Zealand’s benchmark S&P/NZX 50 index was down 0.4 per cent at 11,114.2. REUTERS