Australia: Tech, financials drag shares lower on Thursday

AUSTRALIAN shares edged lower on Thursday, in tandem with global markets, dragged by losses in technology and banking stocks as investors remained wary of potential rate hikes by the US Federal Reserve. The S&P/ASX 200 index fell 1 per cent to 7,164.50 by 0031 GMT. The index gained 0.3 per cent on Wednesday. Global equities traded lower after economic data from US remained supportive of the Fed’s planned pace of interest rate hikes, potentially influencing central banks elsewhere. Elsewhere in Asia, Japan’s Nikkei was down 0.6 per cent at 27,308.25, while Wall Street’s S&P 500 E-minis futures were 0.07 per cent higher. Domestic technology stocks emerged as top drag on the benchmark, shedding over 2 per cent, on track for a third session of losses after tracking overnight declines on the Wall Street. Sector majors ASX-listed shares of Block Inc., Xero, Computershare plunged between 0.4 per cent and 6.6 per cent. Financials slipped over 1 per cent with all of the so-called “Big Four” banks trading in negative territory. The export-reliant mining sub-index fell close to 0.5 per cent, even as iron ore prices continued to move upwards. Sector giants BHP Group and Rio Tinto shed 0.7 per cent each. Bucking the trend, energy stocks gained over 2 per cent on sharper oil prices after European Union leaders agreed on a phased ban on Russian oil, while the ending of Covid-19 lockdown in Shanghai raised demand prospects. Additionally, gold stocks inched 0.7 per cent higher on global inflation woes. New Zealand’s benchmark S&P/NZX 50 index shed 0.5 per cent to 11,322.32 by 0031 GMT. The Reserve Bank of New Zealand said it will allow registered trading banks to resume paying dividends, lifting the complete restriction it had placed earlier. REUTERS