Banks, miners drag Australian shares lower


Aug 12 (Reuters) - Australian shares fell on Friday, dragged down by losses in banking and mining stocks following an overnight retreat in Wall Street, while Insurance Australia Group gained after posting strong annual results.

The S&P/ASX 200 index .AXJO was down 0.5% at 7,034.10 by 0035 GMT. The benchmark was on track to rise 0.1% this week.

Elsewhere, Japan's Nikkei .N225 advanced 2.2% to 28,425.53, while S&P 500 E-minis futures EScv1 were flat.

The Nasdaq and S&P 500 closed lower overnight on the realization the Federal Reserve still needs to aggressively boost interest rates to fully tame rising consumer prices despite fresh evidence of cooling inflation. .N

Financials fell 0.3%, with Commonwealth Bank of Australia CBA.AX declining 1.1% among the so-called "Big Four" banks.

Miners .AXMM shed 0.4% even as iron ore prices advanced overnight. However, the sub-index was set to gain 2.5% for the week. IRONORE/

Fortescue Metals Group FMG.AX fell 0.2%, while Rio Tinto RIO.AX added 0.6% and BHP Group BHP.AX was flat.

Gold stocks .AXGD declined 1% as bullion prices edged lower overnight. The country's major gold miners Newcrest Mining NCM.AX and Northern Star Resources NST.AX fell 1.1% and 0.2%, respectively. GOL/

The technology sub-index .AXIJ slipped 1.6% to hit its lowest since Aug. 2. Xero XRO.AX and WiseTech Global WTC.AX fell 2.6% and 2.2%, respectively.

Insurance Australia Group IAG.AX rose 1.5% to hit a near three-month high, after the general insurer posted an annual profit from a loss a year ago.

On the upside, firm crude prices pushed energy stocks .AXEJ up 0.4%, with Woodside Energy WDS.AX and Santos STO.AX advancing 1.6% and 0.4%, respectively. O/R

New Zealand's benchmark S&P/NZX 50 index .NZ50 edged 0.1% higher to 11,766.61. A Reuters poll found that the country's central bank will stick to its hawkish stance and deliver a fourth straight half-point rate hike on Wednesday.

(Reporting by Upasana Singh; Editing by Rashmi Aich)


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.