2023-08-16 01:27:55
Australian stocks posted their steepest drop in about six weeks on Wednesday as worries about weak economic growth in China and uncertainty about the future direction of US Federal Reserve policy dented investor sentiment.
The S&P/ASX 200 index fell 1.2% to 7,218.3 at 0033 GMT, its worst intraday loss since July 7. The benchmark index also hit its lowest level in five weeks.
Investors weighed whether the Fed might need to keep raising rates longer to rein in inflation after U.S. retail sales rose 0.7% in July, more than the 0.4% forecast by economists.
Growing concern over China’s economy, policy options and financial markets also weighed heavily on investor sentiment.
Tech stocks followed Wall Street’s losses overnight, plunging 3% and posting their worst day in four weeks.
Major sectors and ASX-listed shares of Block fell 2.4% and 3.5% respectively.
Banks also lost nearly 2% and are on course for their biggest losses since May 4. The “big four” banks lost between 1.3% and 3.7%.
Miners slid 2% as traders weighed the latest wave of disappointing data from China against prospects for increased imports and pressure on Beijing for more stimulus.
Shares of Dexus lost the most in 7 months, losing 2.6% as the real estate company reported challenges for the 2024 fiscal year and posted an annual loss.
Contrary to trend, Bapcor was the biggest gainer on the ASX 200, adding 5.5% as the auto parts maker’s net profit after tax for fiscal year 2023 was in line with estimates from brokerage firm Citi.
New Zealand’s benchmark S&P/NZX 50 index fell 0.9% to 11,713.87.
Shares of building materials maker Fletcher Building fell 9.5% after its annual profit nearly halved and it warned of a drop in overall sales volumes in the financial year 2024.
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