The Australian sharemarket trimmed losses on Monday to close 0.3% lower as investor concerns over United States President Donald Trump’s proposed 25% tariffs on aluminium and steel imports moderated.
S&P/ASX200 index dropped 28.6 points or 0.3% to 8,482.8.
Eight of 11 sectors closed lower, with losses led by telecom and tech stocks.
The tech sector declined 1.7%, pressured by rising bond yields and Friday’s Wall Street sell-off. The U.S. unemployment rate fell from 4.1% to 4.0%, reducing expectations for imminent Federal Reserve rate cuts.
WiseTech dropped 4.4%, TechnologyOne lost 1% and NextDC fell 0.5%.
Meanwhile, steel stocks gained, with shares in Australia’s largest steelmaker, BlueScope, rising 1.8% as investors anticipated the company could benefit from U.S. steel tariffs.
Utilities, healthcare, and consumer staples outperformed as investors rotated into defensive sectors less reliant on economic growth.
Among corporate news, Star Entertainment Group gained 13.6% after rejecting takeover proposals from Chow Tai Fook Enterprises and Far East Consortium for its 50% stake in Brisbane’s Queen’s Wharf complex.
JB Hi-Fi fell 4.6%, reversing early gains despite reporting a 9.8% increase in group sales to $5.67 billion in the first half, well above market expectations.
Car Group fell 6.5% after the auto listings company reported 1H FY25 earnings.
Mayne Pharma surged 24.4% after the drugmaker forecasted a significant earnings increase.
Ansell, a medical gear manufacturer, climbed 8.1% after announcing plans to raise prices to offset U.S. tariffs.
On the data front, Business turnover rose 0.4% in December, led by a 12.9% surge in the electricity, gas, water, and waste services industry, according to the Australian Bureau of Statistics (ABS).
Robert Ewing, ABS head of business statistics commented: “Turnover in the Electricity supply subdivision grew 12.2% as coal power plant outages and high temperatures on the east coast put more pressure on electricity supply.
In bond markets, the Australian 10-year yield stood at 4.407%, while the 2-year yield was at 3.805%.
