Australia: Shares track global equities lower; tech stocks slide

AUSTRALIAN shares fell on Thursday, dragged by technology and mining stocks, as a surging inflationary environment globally raised worries about its impact on corporate earnings and growth in major economies. The benchmark S&P/ASX 200 index snapped a four-day winning streak to drop 1.95 per cent to 7,042.9 by 0039 GMT. In other key markets, Japan’s Nikkei shed 2.3 per cent to 26,296.84 and S&P 500 E-minis futures were down 0.5 per cent. Global equities slumped after Britain and Canada’s high inflation numbers, and major US retailers’ slashed earnings forecasts brought to the fore the impact of surging prices and a threat of a recession. Domestic technology stocks emerged as the top drag, shedding over 3 per cent, with ASX-listed shares of Block Inc and accounting software firm Xero falling 2.8 per cent and 4.2 per cent, respectively. Export-reliant mining stocks slipped over 2 per cent after iron ore prices tumbled on fears that policies announced would not be enough to revive the Covid-19-battered Chinese economy. Heavyweight miners BHP Group, Rio Tinto and Fortescue Metals Group slid between 2.2 per cent and 2.8 per cent. Financials lost 1.9 per cent, hitting their lowest in a week. All of the so-called “Big Four” banks declined. Energy stocks too lost over 2 per cent as oil prices fell after data indicated US refiners ramped up output. Santos and Woodside Petroleum lost 1.6 per cent and 2 per cent, respectively. Bucking the trend, however, gold stocks inched 0.5 per cent higher on firmer bullion prices. In New Zealand, the benchmark S&P/NZX 50 index fell 1.5 per cent to 11,086.86 points by 0039 GMT. REUTERS