Australian Shares Fall to 10-Month Low Amid Middle East Market Volatility

Australian Shares Plunge to 10-Month Low

Australian shares fell to a 10-month low on March 23, with banks and heavyweight miners leading declines, as uncertainty over the Middle East conflict kept investors from making massive bets.

The S&P/ASX 200 index was down 1.7% at 8,330.00 points, as of 0119 GMT, and dropped to its lowest point since May 15. The benchmark closed 0.8% lower on Friday.

The index hit a record high of 9,202.90 points on February 26 and has since shed around 9.8%, putting it close to the 10% drop typically used to define a market correction.

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Mining majors such as Rio Tinto and BHP Group lost as much as 2.6% and 2.8%, respectively, to their lowest levels since January 12. The gold sub-index dropped as much as 8.1%, hitting a six-month low.

Financials fell 1.3%, hitting a two-week low, as losses in the "Big Four" banks, down between 1.5% and 2.3%, dragged the sub-index lower. Local tech stocks mirrored movements in their U.S. peers, losing as much as 3.3% to their lowest point since late October 2023.

However, energy stocks gained as much as 0.9% to their highest level since early February 2024. Major energy producers Santos and Woodside Energy advanced 1.4% and 1.5%, respectively.

Investors are awaiting the February inflation data, due later in the week, to seek clarity on the central bank's interest rate policy.

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