Australia: Shares drop as weak metal prices, Fed woes hit miners, financials

[BENGALURU] Australian shares fell nearly 2 per cent on Friday, weighed down by heavyweight miners and financials, as risk appetite took a hit on continued fears over inflation and budget wrangling in the United States.

The S&P/ASX 200 index fell 1.7 per cent to 7,216.50 by 0043 GMT, set for its worst week since Aug 20, and a fourth consecutive weekly decline. The benchmark rose 1.88 per cent on Thursday.

Global stock markets continued to fall, as inflation fears persisted and expectations grew that the US Federal Reserve would tighten policy in the coming months.

Domestic financial stocks fell as much as 2.6 per cent, on track to post their worst session in over 3 months, with the big four banks losing between 1.8 per cent and 2.7 per cent.

Miners fell 1.3 per cent, tracking copper prices lower as power constraints in top consumer China triggered worries over demand.

The heavyweight mining trio, BHP Group, Rio Tinto and Fortescue Metals fell between 1.5 per cent and 2.7 per cent.

Tech stocks fell 0.8 per cent, tracking overnight losses on Wall Street, and were on track for their worst weekly session in over four months. EML Payments, down 2.6 per cent, followed by Megaport, losing 1.8 per cent led losses on the index.

Gold stocks, however, rose 1.8 per cent as bullion prices jumped more than 2 per cent on weaker dollar. AngloGold Ashanti and Geopacific Resources were the top performers on the bechmark, gaining 7 per cent and 6.3 per cent, respectively.

Energy stocks fell 1.9 per cent, with Santos down 3.9 per cent, leading losses, followed by Oil Search, down 3.2 per cent.

Eslwhere, Japan's Nikkei was down 0.3 per cent at 29,360.29, while S&P E-minis futures were up 0.27 per cent.

Across the Tasman sea, New Zealand's benchmark S&P NZX50 index fell 0.4 per cent to 13,225.5.

REUTERS