Australia shares end lower on inflation, economic slowdown worries
* Tech stocks led losses on ASX 200
* Rising bond yields, China’s power crunch soured mood
* NZX 50 fell 0.4% (Updates to close)
Sept 29 (Reuters) – Australian shares ended lower on Wednesday, tracking global markets as risk appetite took a hit amid worries over growing inflationary pressure and economic uncertainties with rising U.S. Treasury yields and China’s power crisis.
The S&P/ASX 200 index fell 1.08% to close trade at 7,196.7 points, with almost all sectors in the red. The benchmark ended 1.5% lower on Tuesday.
Asian markets lost ground as doubts re-emerged over global recovery at a time when the U.S. Federal Reserve is set to taper stimulus and the Biden Administration is stuck in contentious debt ceiling negotiations that could lead to a government shutdown.
“The prospect of rising cash rates and the risk of inflation have left investors worried and doubful about global recovery, and the local market continues to see short-term risks,” Mathan Somasundaram, chief executive officer at Deep Data Analytics said.
“Aussie market will follow the U.S. equities, and the tech and healthcare sectors will get hit on rising yields while resources can get affected on China’s uncertainties.”
Interest rate-sensitive technology stocks fell 2.36%, emerging as the biggest drag on the local bourse, tracking tech-heavy Nasdaq Composite index that ended sharply lower overnight.
Australian fintech firm Tyro Payments Ltd was the top loser in the sub-index, skidding 5.83%, followed by aerial imagery technology firm Nearmap Ltd losing 5.29%.
Energy stocks dived 1.81%, tracking lower oil prices as U.S. crude inventories unexpectedly rose after doubts over demand resurfaced.
Heavyweights Washington H Soul Pattinson and Company Ltd and Woodside Petroleum Ltd led losses in the energy sub-index, falling 3.84% and 2.21%, respectively.
New Zealand’s benchmark S&P/NZX 50 index fell 0.4% to finish the session at 13119.8 points. (Reporting by Riya Sharma in Bengaluru; Editing by Sherry Jacob-Phillips)