FX.co ★ Australian Stocks Retreat from Near 5-Week High

Australian shares fell 85 points, or 1%, to 8,760 in early trading on Tuesday, ending a two-session advance as investors locked in profits after the market touched a near five-week high. Sentiment was further weighed by renewed volatility in global technology stocks and growing doubts about the sustainability of AI-related spending.

On the domestic front, RBA Assistant Governor Kent remarked that the rise in global neutral interest rates raises questions about whether Australia’s monetary policy is sufficiently restrictive, even after four rate hikes this year. His comments cooled confidence in the current policy stance.

The broader market decline was partially cushioned by stronger-than-expected Q3 GDP and September activity data out of China, supported by demand during the Golden Week holiday.

Sector-wise, technology, logistics, non-energy minerals, and financials led the losses. Heavyweight miners BHP Group (-2.1%) and Rio Tinto (-1.2%) posted sharp declines, while the four major banks slid between 1.5% and 2.7%. Other prominent underperformers included Northern Star Resources (-2.2%), Evolution Mining (-3.1%), and Qantas Airways (-1.7%).

Traders are now looking ahead to China’s monthly loan prime rate decision, due later today.