The Australian sharemarket extended its losing streak to a fourth consecutive session on Wednesday, suffering its sharpest daily fall since April, as rising global bond yields weighed on riskier assets.
The S&P/ASX 200 Index dropped 161.8 points or 1.8% to 8,738.80, a fresh two-week low, with all 11 sectors finishing in the red.
Investors were unsettled by a jump in global bond yields, driven by persistent inflation concerns, loose fiscal policy, tariff risks and questions over the independence of the United States Federal Reserve.
The Australian 10-year bond yield climbed 1.4% to 4.43%, while the two-year rose 2.1% to 3.443%.
Losses were heaviest in the risk-sensitive technology sector, with Xero shedding 6.2%, WiseTech Global down 4.6%, and TechnologyOne declining 3.8%.
The major banks also retreated, with Commonwealth Bank down 3.5%, NAB falling 2.3%, Westpac down 3.7%, and ANZ falling 2.2%.
Real estate investment trusts were among the worst performers, with Goodman Group down 3.7%, Mirvac falling 2.6%, Charter Hall down 1.3% and Scentre Group closing 1.2% lower, while Lendlease led the index losses with steep declines of 5.2%.
Utilities also weighed on the market as Origin Energy traded ex-dividend, down 3.6%, while AGL Energy fell 0.6% and Mercury NZ lost 2.4%.
On the data front, Australia’s economy grew faster than forecast in the second quarter of 2025, its strongest expansion in nearly two years, driven by household and government spending despite a drag from weaker public investment.
