Australian Shares Drop Further on Wall Street Jitters, Jobs Data

Australian stocks fell 42 points or 0.5% to 8,686 in early Thursday trading, extending losses to their weakest level in a week. A sharp Wall Street sell-off hit sentiment after hotter-than-expected U.S. inflation data rattled tech stocks and revived bets on Fed hikes. Locally, September jobs data showed the unemployment rate stuck at a near five-year high of 4.7% as employment unexpectedly declined. In major trading partner China, September CPI quickened but undershot forecasts, while producer prices rose more than expected; exports and imports surged to record highs, driving a strong trade surplus. Sectoral losses were led by tech, non-energy minerals, industrial services, and consumer durables, partly offset by gains in communications, consumer non-durables, and utilities. Heavyweight BHP Group slumped 3.8% despite securing a deal to avert a strike at Chile’s Escondida copper mine. Other major laggards included Goodman Group (-3.8%), Lynas Rare Earths (-3.7%), and Codan Ltd. (-3.4%).