Australian shares have fallen in a cross-sector sell-off, dented most by miners and technology stocks, as investors kept a cautious stance following a lower finish on Wall Street, amid fears of inflation and policy tightening by the US Federal Reserve.
The ASX 200 closed down 0.5 per cent at 7,140, hitting its lowest level since last May.
The broader All Ordinaries index fell further, losing 0.7 per cent to 7,442 by the close.
Eight of 11 sectors were lower, with technology, materials and energy stocks shedding 1.7 per cent, 1.4 per cent and 0.6 per cent, respectively.
Regis Resources (-14.3pc), Life360 (-8.9pc) and Novonix (-6.7pc) were among the biggest losers.
Meanwhile, shares of homewares retailer Adairs took a dive, dropping 21.5 per cent to $2.99.
The company estimated that COVID-related store closures reduced its sales by $30-36 million and its earnings before interest and taxes by $14-18 million in the first half of the year.
"During the half, despite significant operational disruptions, we have made strides in progressing our strategic priorities by commissioning our new National Distribution Centre, upsizing selected stores, continuing to expand our range and adding to our omni-channel capabilities," CEO Mark Ronan said in a statement.
There were not many significant gains in the afternoon. Uniti Group (+9.3pc), REA Group (+2.9pc) and Domino's Pizza (+2.5pc) were among the top upwards movers.
Australian real estate investment trusts were the best performers, with the sector gaining 1.8 per cent and rebounding from its recent decline.
FMG to buy Williams Advanced Engineering
Fortescue Metals Group closed down 2 per cent at $20.52, echoing falls by most other commodity producers on the market.
The Western Australian iron ore giant today announced that it would acquire UK-based Williams Advanced Engineering (WAE) from private equity firm EMK Capital and Williams Grand Prix Engineering for $310 million.
Fortescue has been working with WAE since last year to develop a battery system that could power its mining haul trucks as part of its ambition to slash carbon emissions.
It also said the two companies are working on a battery electric train concept.
Aside from reducing emissions from its mines, the miner said WAE was "an important new business growth opportunity" that will be rolled under its Fortescue Future Industries green technologies umbrella.
The Australian dollar was down at 71.74 US cents, by 4:17pm AEDT.
Oil prices slid last week, pressured by an unexpected rise in US crude and fuel inventories, while investors took profits after global oil benchmarks touched seven-year highs.
Brent crude oil was up, trading at $US88.66 a barrel, by 4:18pm AEDT.
Global shares tumble
Risk aversion dominated global markets on Friday as stocks slumped on Wall Street and in Europe.
Oil prices fell from seven-year highs earlier in the week and bond prices surged with traders scurrying for the relative safety of government debt.
On Wall Street, the Dow Jones Industrial Average slid 1.3 per cent, the S&P 500 fell 1.9 per cent and the Nasdaq Composite lost 2.7 per cent.
Both the S&P 500 and the Nasdaq posted their biggest weekly declines since the market crashed in March 2020.
In Europe, the German, French and Italian indices fell almost 2 per cent, with the broad Euro STOXX index of 600 leading regional companies closing down 1.8 per cent. MSCI's all-country world index fell 1.7 per cent.
With the Fed poised to hike interest rates as many as four times this year, fear of a hard economic landing has risen among investors.
But a slowing economy in the months ahead will probably give the Fed second thoughts, said Steven Ricchiuto, US chief economist at Mizuho Securities USA LLC.
"By the time we get to the second rate hike, everything will be rolling over enough that everybody will back off from these calls," he said.
US Treasury and eurozone government bond yields fell as concerns about a potential conflict between Russia and Ukraine also dented risk appetite and stock market falls increased demand for safer assets.
The yield on 10-year Treasury notes fell 7.2 basis points to 1.762 per cent, a sharp drop from a two-year high of 1.902 per cent touched on Wednesday.
Meanwhile, markets overnight in Asia were broadly lower, including in China where benchmark mortgage rates were cut on Thursday in the latest move to prop up an economy soured by its property sector.
ABC/Reuters
