On Tuesday, the Australian S&P/ASX 200 index dropped 0.67 percent, or 47.80 points, closing at 7,086.10, with major declines in mining and technology sectors. Traders remained on edge due to global economic fears and concerns about China's inconsistent progress in reopening after a surge in new infections. The broader All Ordinaries Index also fell, losing 55.10 points or 0.75 percent to reach 7,265.90, following a similarly weak close the previous day.
Major mining companies were hit hard, with Rio Tinto and Fortescue Metals both down almost 1 percent. BHP Group lost more than 1 percent, and Mineral Resources experienced a steeper drop, falling over 2 percent. The only bright spot in the mining sector was OZ Minerals, which gained close to 1 percent, providing a small counterbalance to the otherwise broad-based losses.
In the technology sector, losses were even more pronounced. Xero and WiseTech Global both declined more than 3 percent, while Zip and Appen dropped over 1 percent. The largest fall in the space was from Afterpay's parent company, Block, which lost nearly 4 percent. Gold miners also suffered, with Northern Star Resources, Gold Road Resources, and Evolution Mining each losing close to 2 percent. Newcrest Mining fell over 1 percent, but Resolute Mining remained flat.
Australia's big four banks also saw minor but significant declines. Commonwealth Bank, ANZ Banking, National Australia Bank, and Westpac each dropped between 0.1 and 0.3 percent. Energy companies were also hit—Beach Energy and Origin Energy each declined nearly 1 percent. The biggest single-day drop was from real estate company Domain Holdings Australia, which plunged nearly 8 percent after warning that market conditions had worsened since its annual general meeting.
Japan Nudges Higher, Ending a Losing Streak
Japan's Nikkei 225 index ended the morning session at 27,315.54, up 77.90 points or 0.29 percent. This small gain marked the end of a three-day losing streak, as traders bought discounted stocks after recent declines but remained cautious in the run-up to the Bank of Japan's key rate decision. The index reached a high of 27,339.49 earlier in the session, but gains were limited by global uncertainty.
Fast Retailing, the parent company of Uniqlo, led the Japanese market with a strong 1.5 percent gain. In the tech sector, Advantest and Screen Holdings both rose almost 1 percent each, but Tokyo Electron dropped slightly. The banking sector saw gains as well, with Mitsubishi UFJ Financial and Mizuho Financial each rising close to 1 percent, while Sumitomo Mitsui Financial added over 1 percent.
SoftBank Group edged down 0.2 percent, and Toyota lost 0.5 percent. Sony also declined almost 1 percent despite some gains in other export sectors. Among the few standout performers were Kawasaki Kisen Kaisha, which gained nearly 4 percent, and T&D Holdings and Keisei Electric Railway, which both dropped close to 3 percent. There were no major losers in the session.
The Reserve Bank of Australia will publish minutes from its December 8 policy meeting. At that meeting, the RBA raised its key interest rate by 25 basis points, the third consecutive hike, but at a slower pace than the 50 basis points in previous months. Traders are watching closely to see if further tightening could be on the horizon, even as central banks around the world attempt to balance inflation control with the risk of a global recession.
In Japan, the Bank of Japan is expected to hold its benchmark lending rate at -0.10 percent, maintaining the status quo in monetary policy. The U.S. dollar was trading in the lower 137 yen-range, and the Australian dollar remained at $0.669. These figures reflect the broader global caution that is currently affecting markets in both Australia and Japan.
Markets in other parts of Asia also experienced losses. These declines were driven by shifting global investor sentiment and ongoing uncertainties about the global economic outlook, especially as central banks worldwide continue to tighten monetary conditions.