Australian shares fell 49 points, or 0.6%, to 8,783 in early trade on Thursday, erasing the prior session’s modest gains after a weak lead from Wall Street and a broad selloff in AI and chip-related stocks. Sentiment was further pressured after RBA Deputy Governor Andrew Hauser warned that inflation is proving more persistent than anticipated, with September’s headline CPI at 4%, reinforcing expectations of another rate hike at the November meeting.
Losses in energy, consumer durables, and technology outweighed gains in logistics, transport, and healthcare. Three of the four major banks slipped between 0.4% and 0.7%, while Woodside Energy dropped 3.7%, Wesfarmers fell 2.2%, and Aristocrat Leisure declined 1.2%.
In contrast, Nextdc Ltd. rose 6.4%, staging a rebound from its steepest fall in nearly nine years, which followed the company’s downgrade to its FY2027 guidance. Investors now look ahead to Australia’s flash October PMI figures and testimony from RBA Governor Michele Bullock before parliament on Friday.
