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RBA sees risk of global credit crunch on banking stress
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Tech stocks top percentage loser on ASX
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Investors await U.S. nonfarm payrolls data
(Updates to close)
By Ayushman Ojha
April 6 (Reuters) - Australian shares ended lower on
Thursday, snapping an eight-day winning streak, as heavy losses
in financials and energy stocks weighed on the benchmark index
after the central bank flagged risks of global credit crunch on
the banking sector.
The S&P/ASX 200 index fell 0.3% to close at 7,219.0
points. The benchmark closed marginally higher on Wednesday.
The Reserve Bank of Australia (RBA) said domestic banks were
well-positioned to weather stress in the global financial
system, although it would see a global tightening in lending and
prove a headwind to economic growth.
The RBA on Tuesday left its cash rate unchanged at 3.6%.
Markets are now pricing in an end to rate hikes and a cut by the
year-end. Investors were inclined to take money off the table after
recent strong gains, with trading in many global markets closed
for Good Friday holiday, when potentially pivotal U.S. monthly
payrolls data is due. "There is a bit of cautious trading going on ahead of
payrolls data that could add some volatility heading into the
weekend and is contributing to some weakness in the local bourse
today," said Tim Waterer, analyst at Kohle Capital Markets.
Energy stocks declined 0.7% as oil prices slumped on
concerns over a potential global recession and demand reduction. Tracking losses in tech-heavy Nasdaq, Australian technology
stocks tumbled 2.1%. ASX-listed shares of Block Inc fell 1.6% while Xero dropped 2.6%.
Gold stocks advanced 0.8% to their highest level in
about a year, with Newcrest Mining , the country's
largest gold miner, climbing 0.9%.
Heavyweight miners lost 0.6% with iron ore giants
BHP Group , Rio Tinto , and Fortescue Metals
Group down between 0.1% and 0.4%.
In New Zealand, the benchmark S&P/NZX 50 index was
flat at 11,870.08, a day after central bank unexpectedly raised
its cash rate by 50 basis points to a more than 14-year high of
5.25%.
(Reporting by Ayushman Ojha in Bengaluru; Editing by Sherry
Jacob-Phillips)
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