Australia: Shares fall as Wall Street weakness batters tech stocks

[BENGALURU] Australian shares on Wednesday tracked a sell-off on Wall Street overnight, with tech stocks leading the decline after the Nasdaq index dropped over 2 per cent, while local miners slipped as copper and gold prices weakened.

Global miner BHP Group dropped up to 1.2 per cent in early trade amid a general weakness in the mining sub-index and as the company warned of possible disruptions in Western Australia due to rising Covid-19 cases.

The S&P/ASX 200 index dropped 0.8 per cent to 7,354 points by 2311 GMT. The benchmark had closed 0.1 per cent lower in the previous session.

Equity markets tumbled on Tuesday as traders braced for the US Federal Reserve to tackle fast-rising inflation by tightening monetary policy.

Tech stocks dived nearly 3 per cent to their lowest levels since May 24, with sector major Afterpay falling 0.5 per cent.

Miners slipped 0.6 per cent, with Fortescue Metals falling as much as 2.3 per cent.

Australia's Lynas Rare Earths posted record second-quarter revenue on Wednesday. However, shares fell 0.9 per cent.

Financials also dragged the benchmark lower with their 1.3 per cent drop. Macquarie Group, one of country's top lenders, slid 2.5 per cent to hit its lowest since Dec 20.

Gold stocks slid nearly 1 per cent as investors ditched the safe-haven bullion after the dollar and US Treasury yields strengthened. Evolution mining was down 1.3 per cent.

Energy stocks bucked the overall negative trend to rise over 1 per cent amid robust oil prices.

Sector heavyweights Santos and Woodside Petroleum gained 1.8 per cent and 1 per cent, respectively, ahead of their production figures scheduled to be released on Thursday.

Meanwhile, a measure of Australian consumer sentiment slipped in January as a surge in coronavirus cases soured the national mood, curbing spending and mobility in what is typically a holiday-heavy month.

In New Zealand, the benchmark S&P/NZX 50 index was down 0.8 per cent at 12,705.82 points.

REUTERS