The Australian share market fell on Tuesday as mining stocks declined amid weaker iron ore prices.
Investors were disappointed by a lack of new China stimulus, dragging down major stocks like BHP and Rio Tinto.
The benchmark S&P/ASX 200 index dropping 20.1 points, or 0.2%, to 8185.3.
China’s stock market spiked at the open following a week-long public holiday, but quickly pared back gains as hopes for significant economic support dwindled. as China’s National Development and Reform Commission held a press conference that failed to deliver fresh stimulus.
The downturn in iron ore prices weighed heavily on index heavyweights BHP and Rio Tinto, both falling over 2%.
Iron ore futures, which had been trading above $US114 per tonne in Singapore, fell sharply to below $US110 per tonne following the lack of stimulus announcements.
The energy sector also saw losses, with oil prices snapping a five-day rally. Brent crude slid towards $US80 per barrel, retreating after a 13% surge over the past five sessions amid rising tensions in the Middle East.
On the bond markets, 10-year and 2-year rates were at 4.174% and 3.798%, respectively.
