March 23 (Reuters) - Australian shares fell on Thursday,
dragged by mining stocks on weak iron ore prices, while the U.S.
Federal Reserve pencilling in another 25 basis point rate hike
by this year end hit sentiment.
The S&P/ASX 200 index fell 0.9% to 6,953.00 by 2336
GMT, after a two-day rally. The benchmark ended 0.9% higher on
Wednesday.
The Fed raised rates by 25 basis points, as widely expected,
and said some additional tightening might be possible, but
suggested it was on the verge of pausing future hikes amid
recent turmoil in the financial sector.
Fed Chair Jerome Powell, however, reiterated his desire to
tame inflation, saying the Fed will do "enough" to bring
inflation down to 2%, and it would raise rates higher if it
needs to. In Sydney, miners fell 1.6%, hitting their lowest
since Nov. 28 as iron prices fell. Sector majors Rio Tinto , BHP Group and
Fortescue Metals Group dipped between 1.1% and 2.3%.
Banking stocks shed 0.8%, with three of the 'Big
Four' lenders falling between 0.1% and 0.4%.
Tech stocks tracked their Wall Street peers lower,
falling 1.1%. ASX-listed shares of Block Inc and Xero Ltd dipped 5.2% and 3.2%, respectively, and were among the
top losers on the bourse.
Gold stocks rose 1.3% after two days of losses, as
bullion prices jumped. Gold has climbed over 7% so far this month, closing in on
record highs above $2,000 hit in March 2020 on concerns
surrounding the banking and financial industry, mainly triggered
by higher rates.
Newcrest Mining and Northern Star Resources added 1.8% and 3.3%, respectively, and were among the
top gainers on the bourse.
New Zealand's benchmark S&P/NZX 50 index fell 0.7%
to 11,501.06.
Leading NZ50 losses, Warehouse Group slumped as
much as 14.6%, after it reported a 60.9% drop in half-year
profit after tax.
(Reporting by Echha Jain in Bengaluru; Editing by Rashmi Aich)
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