Australian shares remain over 1% lower after GDP data, NZ hikes rates

Business Recorder reported that Australian stocks kept falling on Wednesday, with the S&P/ASX 200 index 1.1% lower at 8,967 points at 0243 GMT. The benchmark had bounced a little off its intraday trough of 8,935.10 points, even as second-quarter economic growth in Australia slowed but still topped market expectations.

Quarterly growth still sat above the 2% mark that policymakers regard as sustainable, keeping hopes of another rate increase alive. Markets now put the chance of an RBA rise later this month near 60%, as investors stay focused on oil supply risks and inflation linked to the US-Iran conflict.

Mining shares dropped 3.8%, the sharpest one-day loss in over two months, as BHP Group, Rio Tinto and Fortescue each shed more than 2%. Gold stocks lost nearly 5% after bullion hit its lowest point in over three weeks. Across the Tasman, New Zealand's central bank pushed its cash rate up 25 basis points to 2.75%, as it keeps working to tame inflation.