Banks and miners drag Australian shares lower

Business Recorder reported that the Thursday session saw Australian stocks decline by over 1%, with financial and mining names leading losses across every sector. The S&P/ASX 200 slid 1.3% to 8,671.60 at 0055 GMT, despite a softer-than-expected August inflation reading released the previous day that had reduced bets on further rate increases.

The benchmark had climbed 0.9% on Wednesday, its strongest session in eight weeks, after August inflation figures landed a touch under expectations and tempered forecasts for tighter policy. Separately, home values in Australia declined for a sixth straight month in September, while growth in housing credit slowed. The report noted that a prolonged decline in property transactions carries wider consequences, reaching real estate services, tradespeople and construction.

Within the trading day, banks dropped by up to 1.8%, heading for their steepest loss in six weeks. All four major lenders fell between 1.2% and 2.1%, and National Australia Bank, which ranks as the country's third biggest home lender, recorded the steepest fall. Gold miners slid as much as 2% as bullion prices weakened, with Northern Star Resources down 1.9% and Evolution Mining off 2.4%. Rio Tinto shares declined 1.6%, even though the company secured deals with the Australian and Tasmanian governments to keep its Bell Bay Aluminium smelter running until 2031.