Australian shares slip as miners, banks drag

Australian shares fell on Monday, heading for their steepest drop in over three weeks, as lenders slid after the country’s central bank flagged possible future interest rate hikes, while miners eased on profit-taking after recent record highs.

The S&P/ASX 200 index slipped 0.6% to 8,649.80, as of 2311 GMT.

The benchmark closed 1.2% higher on Friday. Last week, the Reserve Bank of Australia signalled an end to its monetary easing cycle as it held rates steady at 3.60%.

The RBA warned that borrowing costs could rise if inflation pressures persisted.

Financials slipped 0.2%, with top lender Commonwealth Bank of Australia falling 0.6%.

Meanwhile, miners dipped 1.1% after advancing for the last three sessions.

The sub-index had touched a record high on Friday, jumping 2.2%.

Copper prices had slipped from their peak on Friday as fears of tech bubble resurfaced, while iron ore futures ended last week lower, weighed down by easing demand in top consumer China.

Major miners Rio Tinto, Fortescue and BHP slipped between 0.7% and 1.6%.

Gold miners fell 0.7%, with Evolution Mining and Northern Star Resources slipping 0.5% and 0.6%, respectively.

Among individual stocks, bourse operator ASX slipped as much as 5.1% to a more than two-year low.

Australia’s corporate regulator enforced an additional capital charge of A$150 million ($99.72 million) on ASX following its inquiry earlier this year.

The company also said it will cut its dividend payout ratio to 75–85% of underlying net profit after tax.

Energy stocks slid 0.7%, as oil prices ended lower on Friday on a supply glut.

Tech stocks tracked overseas peers to slip as much as 1.5% to an eight-month low, while real estate sub-index dipped 0.3%.

Meanwhile, New Zealand’s benchmark S&P/NZX 50 index fell 0.4% to 13,351.89.