The S&P/ASX 200 index fell for a third straight session, declining 2.1% to 6,960.40 by 0006 GMT. The benchmark fell 0.5% on Monday. Startup-focused lender Silicon Valley Bank collapsed on Friday, becoming the largest bank to fail since the 2008 financial crisis. Battling a crisis of confidence, investors globally sold off bank shares despite U.S. regulatory actions to rescue failed banks and guarentee deposits.
In Sydney, financial stocks slipped 2.8% to hit a more five-month low, with the so-called 'Big Four' banks retreating between 1.7% and 2.7%. Heavyweight miners followed suit, shedding 1.4% on news that Chinese regulators might take steps to curb inflated iron ore prices. Sector majors BHP Group and Rio Tinto retreated 1.3% and 0.8%, respectively. Energy stocks dived over 3%, hitting their lowest since October, as oil prices slid about 2% overnight. Woodside Energy lost 3.2%, while Santos fell 3%. Technology stocks retreated 3.7% and were the top percentage losers on the benchmark. Block Inc's ASX-listed shares and Xero dropped 3.7% and 2.5%, respectively.
Gold stocks were a lone bright spot on the benchmark, up 2.6% to hit a four-week high.
Bullion prices surged as their safe-haven appeal drew in investors spooked by the collapse of Silicon Valley Bank. Newcrest Mining , Northern Star Resources . and Ramelius Resources added between 3.3% and 2.8%.
New Zealand's benchmark S&P/NZX 50 index fell 0.5% to 11,629.92. Shares of New Zealand's Synlait Milk hit over 3-month low after it cut its base milk price forecast for the 2022/2023 season on weak global demand.
(Reporting by Poonam Behura; Editing by Rashmi Aich)
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