Australian shares fall as weaker metal prices weigh on miners

On Friday, Australian shares experienced a decline as weaker metal prices impacted mining stocks, despite gains in technology shares. The S&P/ASX 200 index dropped 0.7% to 9,128.50 by 0028 GMT, on course for its largest weekly decline in nearly four months. This drop continued from a 0.2% loss on Thursday. Sentiment deteriorated after the US announced potential prolonged naval blockading of Iran, sparking concerns about potential disruptions to global oil supplies.

Mining stocks suffered the most, with BHP Group and Rio Tinto falling 3.8% and 2.4% respectively, while Fortescue dropped 1.6%. Gold stocks also declined 2.8%, recording a significant one-day drop in two weeks due to lower bullion prices. Technology stocks, however, managed to offset broader losses, jumping 1.7% and leading the market higher.

Banks saw a slight increase of 0.1%, while Westpac's shares rose 0.3%. The banking sector reported mixed results, with Westpac seeing a 20% drop in mortgage applications and forecasting a halving of investor housing credit growth next year. Commonwealth Bank of Australia reported a record annual profit, and ANZ noted a 12% decline in home loan applications.

The focus now shifts to National Australia Bank's third-quarter results, which are scheduled for release next week. Meanwhile, QBE Insurance saw a 6% drop after Citi analysts raised concerns about higher-than-expected catastrophe claims and expense ratios, as well as underperforming underwriting profit following the insurer's annual results. In New Zealand, the S&P/NZX 50 index managed a modest 0.1% increase, closing at 13,836.32.