Australian shares slumped to a five-month low on Friday in a deluge of declines across all sectors, with mining and banking stocks shedding the most, while technology stocks tumbled as Nvidia lost its shine amid a resurgence of investor worries about frothy tech valuations.
The S&P/ASX 200 index fell 1.6% to 8,419.50 by 2335 GMT, hitting its lowest level since June 3.
It rose 1.2% on Thursday.
The benchmark is on track to decline 2.2% so far this week, its weakest weekly move since March 31, as concerns about overvaluation across pockets of the Australian share market and dimming prospects of further monetary policy weighed on risk sentiment.
Financial stocks fell 1.3%, with the “big four” banks trading between 1.2% and 2.2% lower.
The sub-index is set to log a second consecutive week of losses as investors exited the overpriced sector on worries of premium valuations and caution around margin pressures biting into earnings.
The resources sub-index tanked 3.1%, moving in tandem with declining iron ore and copper prices amid worries of softening demand in top metals consumer China.
BHP, Rio Tinto and Fortescue tumbled 3.1%, 2.6% and 3.3%, respectively.
Among gold miners, Northern Star Resources and Evolution Mining declined 3.8% and 4% respectively, tracking the fall in bullion prices.
Technology stocks fell 1.8%, echoing the tech-heavy Nasdaq Composite’s reversal to end lower overnight, as AI darling Nvidia’s upbeat quarterly forecast failed to woo investors on the sustainability of an AI boom. Sector leaders WiseTech Global and Xero declined 2.6% and 2.2% respectively.
Energy stocks fell 1.4%, tracking a fall in oil prices, with sector majors Woodside Energy and Santos tumbling 1.5% and 1.9%, respectively.
New Zealand’s benchmark S&P/NZX 50 index slipped 1.3% to 13,261.59, set for its steepest weekly decline since mid-October.
The country’s central bank is expected to cut its key rate to 2.25% on Wednesday, a Reuters poll showed.
American Dollar Exchange Rate