Banks steady Australian shares as miners and tech stocks slide

what happened

Australian shares recovered from early losses on Tuesday as gains in heavyweight banks offset declines in mining and technology stocks. Newsmetry API reported that the S&P/ASX 200 finished flat at 8,783.90 points after spending much of the session lower. The benchmark had gained 0.8% on Monday.

The country’s four largest lenders rose between 1.3% and 2.3% after recent declines, lifting the financials sub-index 1.4% to its highest close since September 7. The banks are scheduled to release earnings later this month. Investors are focused on how higher borrowing costs, a slowing mortgage market and pressure on household finances may affect margins and profitability.

Minutes from the Reserve Bank of Australia’s September meeting showed unanimous support for raising interest rates to a 15-year high. The board also warned that inflation could stay elevated for longer than anticipated. Across Asia, technology stocks fell sharply as investors questioned the durability of the global AI rally amid stronger competition, heavier debt burdens and tensions in the Middle East.

The weakness spread to Australian companies with international exposure. Miners declined 2.2%, with BHP down 1.8% and Rio Tinto off 2.4%. Technology stocks lost 4.4%, and every constituent ended lower; defence technology provider Elsight dropped 11.8%. New Zealand’s S&P/NZX 50 index fell 0.6% to 13,749.60.

why it matters

The session highlighted a divide between resilient banks and internationally exposed resource and technology stocks. Upcoming bank results and the RBA’s restrictive stance remain key considerations for the financial sector.

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