Stocks in Australia Hit 16-week Low

The ASX 200 plunged 175 points, or 2.0%, on Thursday, its steepest one-day fall since early March, finishing at 8,614, the lowest since mid-June. Australian markets snapped a three-session winning streak as sentiment soured on surging U.S. Treasury yields, sticky inflation, and renewed fears of further tightening by the Reserve Bank. Analysts also cautioned that continued hikes could trigger the country’s worst property slump in three decades. Trade data also weighed, with August’s surplus shrinking to a three-month low as imports outpaced exports. Still, stronger U.S. stock futures capped further weakness, as traders await Friday's U.S. monthly job reports. Heavy selling gripped markets, driven by energy minerals, logistics, transport, and financials. The big four banks fell between 0.9% and 3.3%, while Northern Star Resources (-4.1%), CSL (-3.3%), and Woodside Energy (-3.1%) also posted sharp falls. Suncorp Group tumbled 7.4% after denying takeover talks with Japan’s Tokio Marine.

ASX200 decreased to 8639.00 Index Points, the lowest since June 2026. Over the past 4 weeks, Australia Stock Market Index (AU200) lost 3.74%, and in the last 12 months, it decreased 3.39%.

Australian stocks tumbled 119 points, or 1.4%, to 8,669 in early October trade, erasing prior gains as Wall Street closed mostly lower overnight on rising U.S. Treasury yields and weakness in financials and defensives. Locally, home values fell for a sixth straight month in September amid plunging transaction volumes, with another rate hike this week expected to trigger the worst downturn in three decades. Factory activity also shrank at the fastest pace in 21 months as new orders weakened under rising costs and softer demand. Losses were broad, led by energy minerals, financials, healthcare, and logistics. Lynas Rare Earths tumbled 5.5%, Suncorp Group dropped 5.1%, PLS Group fell 3.0%, and Ampol lost 2.5%. The four big banks also posted notable declines. Still, weakness was tempered after RBA Governor Michele Bullock signaled September’s hike could be the last following four increases this year. Traders now await August trade data due later today.