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Australian shares ended at a one-week low as losses in banking stocks outweighed gains in the mining sector. The S&P/ASX 200 fell for a third consecutive session, dragged down by financials amid concerns that interest rates may remain elevated for longer. Rate-sensitive real estate and consumer stocks also weakened. In contrast, miners closed at a record high, supported by strong production numbers from Rio Tinto and continued strength in gold stocks. New Zealand equities also declined ahead of key inflation data.
Australian equities closed at their lowest level in a week after sustained weakness in banking stocks outweighed strength in the mining sector. The benchmark S&P/ASX 200 slipped 0.4 per cent to 8,782.90, marking its third straight session of losses as concerns around interest rates staying higher for longer continued to weigh on sentiment. Advertisement
Banking stocks were the biggest drag on the market. The financials index declined 1.6 per cent to a one-month low, with Commonwealth Bank of Australia falling to its weakest level in nine months. The sector has now dropped nearly 3.5 per cent so far this month as expectations of prolonged tight monetary conditions raise pressure on lending margins. The upcoming earnings season for the country's four largest banks has also kept investors cautious.
Market participants remain focused on inflation trends and policy signals. Analysts noted that equities are likely to see a more stable recovery only once there is clear evidence that inflation is cooling and interest rate expectations begin to settle, instead of reacting sharply to policy uncertainty and volatile data points.
Interest rate sensitive segments added to the pressure. Real estate stocks slipped 1.6 per cent, while consumer discretionary shares fell 2.1 per cent, reflecting concerns over borrowing costs and household spending resilience.
Mining stocks, however, provided support and ended at a record closing high. The miners index rose after Rio Tinto gained 2.6 per cent, following stronger-than-expected fourth-quarter iron ore and copper production. This marked the eighth record close for the sub-index this month, underlining continued investor confidence in bulk commodities and global demand trends.
Gold stocks also extended gains for a third straight session as geopolitical uncertainty boosted demand for safe-haven assets. Evolution Mining closed at a record high after reporting higher second-quarter output, adding to the sector's recent momentum.
In New Zealand, equities mirrored the cautious mood. The S&P/NZX 50 declined 1.2 per cent to its lowest close in about a month, as investors positioned themselves ahead of domestic inflation data expected shortly.
Source Reuters
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