Australian shares fell for a second consecutive session, with commodity and technology stocks leading declines, while investors awaited further details on the central bank’s monetary stance despite expectations of an interest rate hold.
The S&P/ASX 200 index fell 0.3% to 8,596, as of 2312 GMT.
The benchmark ended the previous session 0.1% lower.
Investor focus is on the Reserve Bank of Australia’s cash rate decision expected at 0330 GMT.
“With rates largely expected to remain on hold, investors will search for policy direction in 2026, particularly whether rate hikes are likely, and when,” said Jimmy Tran, a dealing manager at trading platform Moomoo.
Following a recent batch of hotter-than-expected economic data, markets predict the central bank will keep rates steady until early 2026, with rising odds of a rate hike thereafter.
On the bourse, energy stocks shed as much as 1%, dropping to a one-week low, as oil prices fell following Iraq’s resumption of production at one of its oilfields.
Shares of oil majors Woodside Energy and Santos fell as much as 1% and 1.5%, respectively.
Bullion prices edged slightly lower as investors exercised caution ahead of the US Federal Reserve’s policy meeting, sending gold stocks in Sydney to drop 1.1%, their lowest level in nearly a fortnight.
Gold miners Evolution Mining and Northern Star Resources fell as much as 1.4% and 1.3%, respectively.
Adding to the dull sentiment, miners slipped as much as 0.6% due to bleak iron ore prices.
Technology stocks declined as much as 1.1% in tandem with its Wall Street peers.
Meanwhile, rate-sensitive real stocks were flat, while financials inched 0.2% lower.
Further south, New Zealand’s benchmark S&P/NZX 50 index edged up 0.2% at 13,508.90.
American Dollar Exchange Rate