Banks steady Australian shares as AI rally doubts weigh on miners, tech
Financials post highest close since early September Miners slide 2.2%; Rio Tinto falls 2.4% Asian technology stocks slide after Wall Street selloff (Updates to close) By Nichiket Sunil and Shravya Marakini Oct 13 (Reuters) — Australian shares recouped early losses on Tuesday, with gains in heavyweight banks countering declines in mining and tech stocks as doubts grew about the sustainability of the global AI rally. The S&P/ASX 200 index closed flat at 8,783.90 points after trading lower for much of the session. The benchmark rose 0.8% on Monday. The country's top four lenders rose between 1.3% and 2.3% after recent declines, helping the financials sub-index climb 1.4% to its highest close since September 7. The lenders are due to report earnings later this month, with investors closely watching how elevated borrowing costs, a mortgage slowdown and pressure on household finances affect margins and profitability. Minutes of the Reserve Bank of Australia's September meeting showed the board unanimously backed an interest rate hike to a 15-year high, while expressing concern that inflation could remain elevated for longer than expected. In Asia, technology stocks tumbled as investors q
4% Asian technology stocks slide after Wall Street selloff (Updates to close) By Nichiket Sunil and Shravya Marakini Oct 13 (Reuters) — Australian shares recouped early losses on Tuesday, with gains in heavyweight banks countering declines in mining and tech stocks as doubts grew about the sustainability of the global AI rally. 90 points after trading lower for much of the session. 8% on Monday. 4% to its highest close since September 7.
The lenders are due to report earnings later this month, with investors closely watching how elevated borrowing costs, a mortgage slowdown and pressure on household finances affect margins and profitability. Minutes of the Reserve Bank of Australia's September meeting showed the board unanimously backed an interest rate hike to a 15-year high, while expressing concern that inflation could remain elevated for longer than expected. In Asia, technology stocks tumbled as investors questioned the sustainability of the global AI rally amid rising competition, mounting debt burdens and tensions in the Middle East.
The weakness spilled over to the Australian market, with globally exposed stocks bearing the brunt of the selloff. 4%, respectively. Both BHP and Rio have increased their exposure to copper, a key metal for data-centre expansion and electrification, strengthening their links to the AI investment theme. "Copper has been a major beneficiary of the AI and data centre investment boom this year, and with BHP and Rio Tinto increasingly exposed to the metal, weakness in Asian technology stocks can certainly spill over into the resources sector," said Greg Smith, investment specialist at Generate Investment Management.
4%, with all constituents in negative territory. 8%. 60. S.
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