Australian shares close at lowest in over a week; miners, banks weigh

Australia’s S&P/ASX 200 dropped 0.6% to 8,834.50 on Wednesday, its weakest closing level since October 26, Business Recorder reported. Mining stocks fell 1.3%, extending their losing streak to five sessions, while financial shares ended 0.2% lower.

Investors weighed the effects of high borrowing costs against indications that the Reserve Bank of Australia could be nearing the end of its rate increases. The bank recently lifted its cash rate to 4.85%, an 18-year high, but removed wording suggesting further rises could follow if required. Short-term government bond prices gained after that shift, and the 3-year yield eased to 4.756%, reflecting both rate expectations and concerns about growth.

Copper trading near an 11-week low added pressure on miners, with BHP down 1.5% and Rio Tinto off 1.7%. New Zealand’s S&P/NZX 50 rose 0.5% to 13,783.45, while data showed unemployment there at an 11-year high before this week’s election.