Australian shares slip on Fortescue-led miner selloff; banks limit losses

Australian shares weakened on Thursday, with the S&P/ASX 200 index down 0.4% at 8,693.30 points by 2328 GMT, following a 0.1% fall on Wednesday. According to Business Recorder, the decline was led by mining stocks, which were hit by weak preliminary quarterly figures from Fortescue. Investors also turned wary once minutes from the US Federal Reserve revealed a split among policymakers over whether more rate increases were needed.

Miners dropped more than 2% to their lowest since September 16, with Fortescue weighing heavily on the group. The fourth-largest iron ore producer in the world said its cash holdings declined 37% during the September quarter, and preliminary numbers showed first-quarter iron ore shipments fell 6%. Fortescue's shares slid over 3.5%, touching their weakest level since July 2025, which made the company one of the ASX's largest laggards. Lower aluminium and zinc prices added to pressure on the mining sub-index.

Gold miners were the heaviest losers, with the sector down 2% to its lowest since mid-September on softer bullion prices. Tech shares dropped 1.1% and banks bucked the trend with a 0.5% gain. Among other moves, the exchange operator ASX climbed 4.5% after Citi lifted its earnings forecasts on firmer trading volumes.