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Financials drag ASX lower, post fall of 1.2%
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ASX-listed Block Inc's shares plunge on short-seller
report
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Benchmark logs seventh straight weekly loss
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Upcoming RBA interest rate decision in focus
(Updates to close)
By Mehr Bedi
March 24 (Reuters) - Australian shares finished lower on
Friday, as banking stocks dragged down the bourse on lingering
concerns over the U.S. Federal Reserve walking a tightrope
between balancing inflation with banking stability.
The S&P/ASX 200 index finished 0.2% at 6,955.20
points and posted a weekly decline of 0.6%, its seventh straight
week in the red.
The Fed hiked interest rates by a quarter percentage point
earlier this week, but indicated it was on the verge of pausing
its monetary tightening cycle amid worries of pushing the
economy perilously closer to a recession.
Meanwhile, a rate pause is said to be on the cards at the
Reserve Bank of Australia's (RBA) next policy meeting on April
4.
"Global dynamics are likely to remain dominant, though
Australia's variable rate mortgage structure at least gives the
RBA board transparency about where monetary conditions are
reducing over-tightening risk compared to other markets," said
J.P. Morgan analyst Ben K Jarman said in a note.
All eyes are on the upcoming domestic retail trade and
inflation data, due next week, to see if it provides evidence of
cooling demand.
"This renewed focus on inflation might prolong the rate hike
trajectory for RBA but not necessarily gear another hike soon as
the Australian central bank might want to wait for the next CPI
due after the April meeting date," IG analyst Hebe Chen said.
ASX-listed shares of Block Inc plunged 20%, leading
losses on the benchmark, after Hindenburg Research alleged that
the company overstated its user numbers and understated its
customer acquisition costs.
Financials fell 1.2%, posting a fourth straight
weekly loss, with the 'Big Four' banks dipping between 0.8% and
1.9%.
Meanwhile, gold stocks advanced 1.9% after bullion
extended gains to a second straight session. New Zealand's benchmark S&P/NZX 50 index ended down
0.1% at 11,580.81, and also logged its seventh straight weekly
loss.
(Reporting by Mehr Bedi in Bengaluru; Editing by Sonia Cheema)
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