Australia: Technology stocks drag shares lower, RBA holds rates
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
[BENGALURU] Australian shares closed lower on Tuesday, with technology stocks leading the decline after a sharp sell-off on Wall Street, while the Reserve Bank of Australia (RBA) left its monetary policy unchanged as widely expected.
The S&P/ASX 200 index settled down 0.4 per cent at 7,284.4, recovering some ground after a more than 1 per cent drop in early trade as markets across Asia cut losses.
Major indices on Wall Street fell overnight, as investors dumped Big Tech and other growth stocks in the face of rising Treasury yields, while concerns about a potential US government debt default also fed caution.
Technology stocks in Australia fell 3 per cent and recorded their worst session in more than a month. Buy-now-pay-later giant Afterpay shed 5 per cent to close at its lowest level in over two months, while artificial intelligence firm Appen settled at a three-and-a-half-year low.
"It would seem that we have started the month with a lot of volatility... and big swings on Wall Street certainly don't help," said Brad Smoling, managing director at Smoling Stockbroking.
Meanwhile, the country's central bank held interest rates at a record low for an 11th straight month, and sounded ready to keep them there for a lot longer, even as pressure mounts for a hike to cool a red-hot housing market.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
"We didn't expect the RBA to change policy, and that's probably helped stabilise the market to some degree," said Mr Smoling.
Heavyweight financials fell 0.2 per cent after notching the best session in nearly a month on Monday. Three of the so-called "Big Four" banks - National Australia Bank, Australia and New Zealand Banking Group and Westpac Banking - slipped between 0.1 per cent and 0.7 per cent.
New Zealand's benchmark S&P/NZX 50 index ended more than 1 per cent lower at 13,199.99, dragged down by healthcare and technology stocks.
A private think tank said business confidence in the country dropped in the third quarter as the latest Covid-19 lockdown hurt sentiment.
REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
