Australian shares inched lower on Tuesday, dragged down by losses in miners and technology stocks, as investors awaited minutes from the Reserve Bank of Australia’s September meeting for clues on the interest-rate outlook.
The S&P/ASX 200 index fell 0.2% to 8,767.80 points by 2333 GMT, after closing 0.8% higher in the previous session. Reserve Bank of Australia Governor Michele Bullock said late last month that some inflation risks had “materialised” and the central bank was prepared to raise rates further if needed.
Markets are pricing in a 30% chance of a rate hike, with a hold still seen as the more likely outcome.
The RBA has raised rates four times this year to a 15-year high of 4.6%.
Higher oil prices after fresh attacks in Saudi Arabia have clouded the inflation outlook, overshadowing optimism over US President Donald Trump’s pledge to support Russian diesel exports and a Russia-Ukraine ceasefire covering energy infrastructure.
In Australia, energy stocks advanced nearly 2% to hit their highest in nearly a month, with Woodside Energy and Santos up 1.8% and 2.3%, respectively.
Analysts at Citi said they favour Australian energy stocks ahead of the September-quarter results, citing firmer commodity prices and what they described as “compelling value” across the sector.
Banks rose 0.4%, with National Australia Bank, Westpac and Commonwealth Bank of Australia up between 0.2% and 0.5%.
Technology stocks tumbled 2.6%, tracking the Nasdaq’s fall overnight. WiseTech Global and Xero declined 3.6% and 2.1%, respectively.
Miners fell 1.6%, with BHP Group and Rio Tinto down 1.4% and 1.9%, respectively. Gold miners slipped 1.2%.
Top iron ore producer Rio Tinto is scheduled to report its quarterly production numbers on Wednesday. New Zealand’s benchmark S&P/NZX 50 index lost 0.2% to 13,806.89 points.