Australian shares slump to two-month low as miners fall

By Keshav SinghChundawat

Sept 11 (Reuters) - Australian ‌stocks ended Friday ​at ​a more than two-month low, as miners led by BHP lost on weaker commodity prices, while a surge in oil prices over the ‌week heightened inflation concerns and kept investors on edge.

The benchmark S&P/ASX 200 ⁠index fell 0.9% to 8,741.20 points, its lowest closing level since July 2. It lost 2.1% ‌in the week, its steepest drop ‌since mid-March.

Global investors shunned risk assets on the day on fears that higher oil prices and persistent inflation fuelled by the Middle East war could prompt ​further policy tightening.

"It's no surprise to see the market in a steep 'risk-off' mode with investors retreating to cash and defensive assets until we see some stability ⁠in the macroeconomic outlook," said Luke Winchester, portfolio manager at Merewether Capital.

Heavyweight miners slumped 3.7%, their steepest drop ​since June 19, as copper fell after Reuters reported that the White House has yet to decide on refined copper tariffs amid ​officials' concerns that higher prices for the metal ‌could raise manufacturing costs. [MET/L]

Major miner BHP slumped 4.1%, clocking its worst session since mid-June, while Rio Tinto shed 3.5%. Lithium miners Liontown ⁠and PLS tumbled 8.6% and 7.4%, respectively.

Oil prices eased but were still set for a weekly gain, holding above $100 a barrel on fears of prolonged supply disruptions. [O/R]

Over the week, hawkish ⁠signals from Reserve Bank of Australia governors, together with higher energy prices, increased expectations of further tightening.

Markets ​are currently pricing in 32 basis points of rate hikes by November and 39 bps for December.[0#AUDIRPR]

Yields on both short-term and long-term Australian government bonds jumped over the 5% mark to ‌their highest levels since mid-2011 as a global bond selloff took hold.

Limiting losses, financials advanced 1.1%, clocking their best session in ‌nearly two weeks, after three straight sessions of losses.

In New Zealand, benchmark S&P/NZX 50 index ⁠fell 1% to 13,580.33 points, its ‌lowest closing level since ​late-June.

Investors are now awaiting the island nation's June-quarter GDP data to be released next week.

(Reporting by Keshav Singh Chundawat in Bengaluru; Editing by ‌Harikrishnan Nair)

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