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ASX 200 down after two days of gains
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Australia March jobless rate near 50-year low
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Financials fall for a second straight session
(Updates to close)
By Echha Jain
April 13 (Reuters) - Australian shares snapped two
sessions of gains on Thursday, as data showing a tight labour
market suggested further monetary policy tightening by the
country's central bank.
The S&P/ASX 200 index closed 0.3% lower at 7,324.10,
dragged by mining and banking stocks. The benchmark rose 0.5% on
Wednesday.
Australia's employment blew past expectations for a second
straight month in March, while the jobless rate held near
50-year lows, pointing to a drum-tight labour market.
"This increases the likelihood of a further (and likely
final) rate hike at next month's meeting," said Anna Milne, an
equity analyst at Sydney-based Wilson Asset Management.
Analysts at Citi said in a note they expected the labour
market to loosen this year, likely in the second half.
Meanwhile, minutes of the U.S. Federal Reserve's March
meeting showed policymakers considered pausing rate hikes due to
concerns related to the failures of two regional banks, and
projected a "mild recession" starting later this year.
Data showed U.S. consumer prices barely rose in March,
suggesting the rate-hike cycle was nearing its end.
In Australia, financials dipped 0.3% in their second
straight session of fall.
Miners slipped 0.6%, as iron ore futures fell on
pessimism spurred by tepid steel demand in China. Index heavyweights Rio Tinto , BHP Group and Fortescue Metals Group fell between 0.7% and 1.8%.
BHP won support from OZ Minerals shareholders to
proceed with its A$9.6 billion ($6.44 billion) takeover of the
Australian copper and gold producer.
On the other hand, energy stocks advanced 0.9%, with
Woodside Energy and Santos adding 1.1% and
0.4%, respectively.
New Zealand's benchmark S&P/NZX 50 index rose 0.1%
to 11,930.86.
($1 = 1.4905 Australian dollars) (Reporting by Echha Jain in Bengaluru; Editing by Subhranshu Sahu)
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