Miners drag Australian shares lower as markets digest escalating US-China trade war tensions

April 9 – Australian shares fell at the open on Wednesday, hurt by a drag in mining stocks, tracking a fall in major stock indexes globally, with the United States’ 104% tariffs on China expected to come into effect shortly.

The S&P/ASX 200 index fell 1.6% to 7,392 points by 0033 GMT, almost wiping out gains from the previous session, when it finished 2.3% higher.

The United States said that 104% duties on imports from China will take effect shortly after midnight, with the news driving up concerns about slowing growth and higher inflation that have pummelled stocks since last week.

Locally, markets remain vulnerable on worries that U.S. President Donald Trump’s tariff policies may cause economic pain globally, and particularly in China — Australia’s single biggest export market.

The mining sector on the local bourse dragged the most, falling 3.5%, tracking weaker iron ore prices on escalating trade tensions between the U.S. and top consumer China.

Mining giants Rio Tinto, BHP Group and Fortescue fell between 3.9% and 4.9%.

Banks fell 0.4%, with the “Big Four” banks declining between 1% and 1.8%.

Energy stocks also fell 3.3%, tracking a slide in oil prices.

Energy majors Woodside Energy and Santos fell 3.7% and 3.5% respectively.

Investors are now wagering that the uncertainty will tip the Reserve Bank of Australia into cutting rates when it next meets in May.

Meanwhile, New Zealand’s benchmark S&P/NZX 50 index fell 0.5% to 11,825.65 points.

The Reserve Bank of New Zealand holds its next policy meeting later in the day and is considered certain to cut the 3.75% official cash rate by 25 basis points, with some chances of a drop to 3.25%.

This article was generated from an automated news agency feed without modifications to text.