Australian shares retreated on Wednesday, giving back the previous session’s gains as rising global bond yields and persistent inflation concerns weighed on investor sentiment.
The S&P/ASX 200 Index fell 108.1 points, or 1.3%, to close at 8,496.6, with eight of the index’s 11 sectors ending lower.
The decline followed weakness across Asia-Pacific markets after an overnight sell-off in U.S. Treasurys pushed global bond yields towards multi-decade highs.
Elevated oil prices linked to ongoing Middle East tensions also fuelled concerns inflation could remain stubbornly high, increasing expectations for tighter monetary policy.
The Materials sector led losses as higher bond yields and the prospect of further U.S. interest rate increases pressured gold prices and mining shares.
Northern Star Resources fell 2.6%, Evolution Mining dropped 4.9%, and Newmont Corporation lost 4.5%.
Major mining heavyweights also retreated, with BHP down 2.3%, Rio Tinto falling 1.5%, and Fortescue down 1.2%.
Telecommunications stocks were heavily sold after renewed weakness in Tuas shares, which plunged 16.9% after Singapore’s Infocomm Media Development Authority suspended its review of the proposed Simba-M1 merger on Monday amid an investigation into the alleged unauthorised use of radio frequency bands.
Telstra fell 1.1%, SEEK declined 3.1%, CAR Group dropped 3.3%, and REA Group slipped 2%.
Among individual companies, James Hardie lost 0.9% after reporting a 75% decline in full-year group net income to US$104 million (A$146 million), down from $424 million a year earlier, as costs tied to the AZEK acquisition, restructuring initiatives and asbestos compensation weighed on earnings.
Electro Optic Systems tumbled 10.3% after announcing a $150 million institutional capital raising at $8 per share, while also unveiling a further $40 million strategic placement from defence-focused investors.
In contrast, sports analytics and technology company Catapult surged 17.7% after reporting management EBITDA of US$24.7 million, representing a 67% increase from a year earlier.
On the bond markets, Australian 10-year and two-year government bond yields were down 0.7% and 0.9% respectively, at 5.072% and 4.709%.
