At closing bell, the benchmark S&P/ASX200 declined 28.95 points, or 0.43%, to 6,631.30. The broader All Ordinaries dropped 33.58 points, or 0.49%, to 6,866.70.
Shares of major coal producers tumbled amid worries about rising Australia-China tensions after reports that China has formally banned imports of Australian coal. New Hope Corp. fell almost 11%, Yancoal Australia dropped more than 10% and Whitehaven Coal slid 7%.
The major miners were also weak. Fortescue Metals fell more than 3%, BHP Group was lower by more than 2% and and Rio Tinto shed almost 1%.
The big four banks - Westpac, Commonwealth Bank, National Australia Bank and ANZ Banking - were lower in a range of 0.2% to 0.6%. The Australian Prudential Regulation Authority or APRA said from January 1, it is removing a limit it imposed in July that required banks and insurance companies to retain at least half their earnings to ensure their stability amid the pandemic.
ECONOMIC NEWS: Minutes from the Reserve Bank of Australia's December policy meeting released Tuesday warned of the possibility of an extended period of high unemployment as it would take time for output to reach its pre-pandemic level. The high unemployment rate and excess capacity across the economy more broadly were expected to result in subdued wages growth and inflation over coming years. Given this environment, the Board viewed addressing the high rate of unemployment as an important national priority, the minutes said.
CURRENCY NEWS: The Australian dollar changed hands at $0.7512 following levels above $0.756 seen yesterday.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content