Nov 17 (Reuters) - Australian shares inched lower on Monday to hit their lowest level in four months, with heavily weighted resources stocks weighing the most on the benchmark index on softer underlying commodity prices.
The S&P/ASX 200 index .AXJO fell 0.3% to 8,612.50 by 2322 GMT, hitting its lowest level since mid-July. The benchmark shed 1.4% on Friday.
Mining stocks .AXMM lost 1.2% and were on track for their weakest session in nearly two weeks. Sector majors BHP BHP.AX, Rio Tinto RIO.AX and Fortescue FMG.AX fell 1.6%, 0.4% and 0.6%, respectively.
The sub-index, which accounts for nearly a quarter of the bourse in terms of market value, tracked a broad selloff in copper and other metals on Friday following hawkish commentary on U.S. rate cuts and weak economic data from top consumer China. MET/L
Gold miners .AXGD also fell after bullion prices declined on Friday, with Northern Star Resources NST.AX and Evolution Mining EVN.AX down 1.3% and 2.3%, respectively. GOL/
Stronger-than-expected employment data released last week prompted investors to scale back expectations of further policy easing from the Reserve Bank of Australia next year.
Swaps now indicate a 43.9% probability of a rate cut in May 2026, down from nearly 70% before the data. 0#AUDIRPR
Financials .AXFJ slipped 0.2%, with Commonwealth Bank of Australia CBA.AX down 0.3%, while the other "big four" banks rose slightly. Lower interest rates increase demand for credit, which supports bank profits.
Among individual stocks, IperionX IPX.AX tumbled nearly 25%, making it one of the worst performers on the benchmark, as trading resumed after a halt on Thursday. The titanium producer "strongly rejected" a short seller report that questioned its valuation and challenged its project claims.
New Zealand's benchmark S&P/NZX 50 index .NZ50 was little changed at 13,455.06. The country late on Sunday welcomed the United States' announcement on removing additional tariffs on a range of agricultural products, but said it would like to see all additional tariffs on local goods removed.
(Reporting by Nikita Maria Jino in Bengaluru; Editing by Subhranshu Sahu)
((Nikita.Jino@thomsonreuters.com;))
Comments