Global technology and mining stocks were hit hard overnight, but the ASX largely avoided the damage, as a weaker-than-expected jobs figure reduced the likelihood of further interest rate pain.
The benchmark ASX 200 pared back early losses to finish down just 8.20 points or 0.09 per cent to 8719.70.
Meanwhile, the broader All Ordinaries fell 28.60 points or 0.32 per cent to 8840.40.
Australia’s dollar fell against the greenback to buy 69.53 US cents.
Despite the falls, seven of the 11 sectors finished higher.
Leading the declines was the materials and technology sector, which was hammered along with global markets due to AI return concerns, Chinese chip supply fears and fears the US will lift interest rates.
Mining giant BHP shares slumped 4.70 per cent to $58.00, while Rio Tinto dropped 4.85 per cent to $152.70 and Fortescue fell 1.96 per cent to $15.02.
Australian technology shares were also hit, with Codan down 2.62 per cent to $60.69, Xero fell 3.04 per cent to $57.72 and NextDC slumped 7.42 per cent to $8.86.
The chip-heavy Korean stock market tumbled nearly 8 per cent at the time of writing, while the technology heavy Nasdaq was down 1.88 per cent overnight.
Pepperstone head of research Chris Weston said higher US inflation and broader technology fears had hit global markets.
“The bigger message is that markets are no longer simply repricing inflation and interest rates. They’re increasingly questioning the resilience of growth, and volatility may not yet fully reflect that shift,” he said.
Helping to limit the damage on the local market was weaker than expected jobs data which showed the unemployment rate jumped to 4.7 per cent in September.
The 4.7 per cent unemployment rate is the highest since the Covid pandemic. The number of Australians who found work decreased by 39,000.
HSBC chief economist Paul Bloxham said the jobs market needed to slow in order to get inflation down.
“Today’s jobs market print suggests just that – the jobs market appears to be continuing to loosen,” he said.
“Overall, our take is that the jobs market is on a loosening trend, and we see a further rise in the unemployment rate yet, to 5.1 per cent by Q2 2027.”
“On these latest figures, the jobs market also appears to be loosening a bit faster than the RBA expected.”
Shares in Netwealth dived 7.95 per cent to $15.42 due to quarterly flows coming in below expectations while the company also lowered its full-year guidance.
Penfold’s parent company Treasury Wine Estates shares jumped 4.58 per cent to $5.94 after telling the market it was optimistic about its early momentum and long-term opportunity in the wine sector during its annual general meeting. The company said it was on track to save $100m a year by FY29 while reiterating previous financial guidance.
Four-wheel drive accessories company ARB shares dragged 3.27 per cent to $16.56 after announcing weaker quarterly sales due to lower domestic and export markets.