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Westpac up 0.1%, financials down 0.8%
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Most major sub-indexes end lower
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RBA governor says more rate hikes needed
(Updates to close)
By Rishav Chatterjee
Feb 17 (Reuters) - Australian shares closed nearly 1%
lower on Friday to log a second consecutive weekly loss, dragged
down by banking and technology stocks, as fears of further rate
hikes from the U.S. Federal Reserve dented risk appetite
globally.
The S&P/ASX 200 index fell 0.9% to 7,346.8 points at the close of trade. The benchmark ended 1.2% lower this week.
Overnight, major indexes on Wall Street closed sharply lower as lacklustre economic data from the week more than offset a relatively strong economy in the face of the Fed's rate-hike campaign. Data from the U.S. Labor Department overnight showed monthly producer prices accelerated in January, offering more evidence of economic resilience despite tighter monetary policy. "Data (published this week) have created a disaster recipe, which will very likely bring a hawkish Fed back in game," said Glenn Yin, head of Research and Analysis at Sydney-based broker AETOS Capital Group.
Reserve Bank of Australia (RBA) Governor Philip Lowe has said that further increases in interest rates would be needed in the months ahead.
Back in Sydney, financials fell 0.8% with three of the "Big Four" banks ending in negative territory. Australia's No.3 lender Westpac added 0.5% even as its common equity tier-1 ratio in the first quarter fell sequentially.
QBE Insurance topped gains on the ASX 200 and closed at a nearly three-year high after posting a rise in its annual profit.
Technology stocks fell 2.2% while healthcare and real estate stocks closed between 1.7% and 1.3% lower. WiseTech Global closed 3.4% lower after announcing it will acquire U.S.-based intermodal rail solutions provider Blume Global for $414 million.
An overnight fall in oil prices dented energy stocks , with Woodside Energy and Santos losing between 1.2% and 2%.
Coal miners Whitehaven and Yancoal extended losses after they were ordered to set aside coal for use by domestic power generators under a government policy.
Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50
index lost 0.1% to finish the session at 12,144.66
points.
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Sherry
Jacob-Phillips)
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