PHOTO
Australian shares finished in the red for the fourth straight session on Wednesday, dragged by gold miners and energy firms, while market sentiment was weakened by a patchy recovery in top trading partner China and an easing of rate cut bets in the U.S. and Europe.
The benchmark index S&P/ASX 200 fell 0.3% to 7,393.1 points, its lowest closing level since mid-December.
Gold miners were the biggest losers in the benchmark, ending 5.3% lower to mark their worst day since September 2022, as bullion extended declines on hawkish comments from a U.S. Federal Reserve official, which dampened hopes of a March rate cut.
Furthermore, Evolution Mining reported lower-than-expected quarterly gold production, sending its shares down 17.3% to post their worst day since June 2022, while ASX-listed shares of Newmont Corp slid 5.1%.
"Overnight weakness in gold and oil prices translated into losses on the energy and materials sectors on the ASX," Tim Waterer, chief market analyst at KCM Trade, said.
"The outlook for gold this year still looks constructive should the Fed start cutting rates, albeit perhaps not aggressively as the market may hope for."
Meanwhile, data showed Chinese economy grew slightly slower than expected in the fourth quarter, at a time when deepening property crisis, deflationary pressures, and weak demand are reinforcing expectations of more stimulus measures.
"Australian equities and the AUD (Australian dollar) will remain highly sensitive to Chinese economic releases, with the property sector in China remaining a source of high concern," Waterer added.
Energy stocks further weighed on the benchmark, declining 1.2% after oil prices fell on Wednesday on softer-than-expected China GDP.
Sector heavyweights Woodside Energy and Santos shed 1.4% and 0.8%, respectively.
Among other sectors, miners lost 0.9%, while banks fell 0.3%.
Markets now await the release of domestic December employment data on Thursday, which would provide clues on the Reserve Bank of Australia's monetary stance in the first meeting of this year early next month.
The New Zealand benchmark S&P/NZX 50 index ended marginally down at 11,767.03 points. (Reporting by Roshan Thomas in Bengaluru; Editing by Mrigank Dhaniwala)