Tracking Wall Street’s slump overnight, the S&P/ASX 200 index closed 0.9 per cent lower at 6,982.7.
Global markets were battered alike after U.S. consumer prices for April jumped the most in nearly 12 years. The report was closely watched by market participants to gauge the Federal Reserve’s policy direction even as it held on to a dovish tone.
Sentiment was further soured after China missed forecasts for quarterly gross domestic product (GDP) and March industrial output, worrying investors in Australia about its top trade partner’s economic recovery.
Tech stocks were the biggest percentage losers on the benchmark, ending 4.7 per cent lower, tracking a tech sell-off in U.S. peers.
Xero Ltd was the biggest loser on the sub-index, falling nearly 14.6 per cent to A$115.25 as its revenue for the year missed estimates.
Local miners also dragged the index, ending nearly 1.9 per cent lower as iron ore prices fell more than 7 per cent after a five-session rally.
The country’s mining triumvirate BHP Group, Rio Tinto and Fortescue slid between 1.7 per cent and 4.4 per cent.
A bright spot on the index were healthcare stocks, finishing 1 per cent higher as the U.S.-exposed stocks benefited from a firm dollar.
Mining services provider Perenti Global led losses on the benchmark, hitting its lowest in a year on warning that second half earnings would be “softer” than the first half.
Meanwhile, Aussie crypto stocks, although not part of the benchmark, tracked a bitcoin slump overnight after Tesla chief Elon Musk halted use of the digital currency for car purchases.
Cryptocurrency investment firm Fatfish Group fell over 10 per cent, Raiz invest dropped as much as 7.4 per cent and DigitalX fell to a month’s low.
New Zealand’s benchmark S&P/NZX 50 index dropped 1.1 per cent to finish the session at 12,428.12, extending losses into the seventh session.
