Australian shares head for worst day in nearly three weeks as miners, banks slide

Australian shares plummeted more than 1% on Tuesday, on track for their steepest decline in nearly three weeks, as financial institutions and commodity-linked stocks outshone tech companies' gains. The S&P/ASX 200 index tumbled 1.1% to 8,752.80 by 2327 GMT, edging towards its worst day since October 1. The benchmark closed 0.4% higher on Monday.

Weakness was widespread among miners and banks, with softer commodity prices burdening miners and energy firms and National Australia Bank's (NAB) restructuring program exacerbating pressure on lenders. NAB announced it would cut up to 2,500 jobs, or roughly 6% of its workforce, in 2027 to streamline operations amid a more challenging outlook for credit growth.

Its shares retreated 1.9% after lagging behind the sector's decline. Financials slipped 1.3%, with Commonwealth Bank of Australia, Westpac, and ANZ each losing between 1.2% and 1.6%. Miners dropped 2%, with BHP plunging as much as 2.4% after reporting weaker-than-expected first-quarter copper production, hampered by disruptions at its Escondida mine in Chile.

Both Rio Tinto and Fortescue fell more than 1%. Gold miners slipped 2.3% after bullion prices declined overnight. Energy stocks slumped as much as 1.6%, marking their steepest intraday decline since October 1, following a dip in Brent crude. Woodside and Santos each fell 0.9% and 1.2%, respectively. Technology stocks bucked the trend, advancing as much as 2% to a one-week high after their Wall Street counterparts closed higher overnight.

Xero and WiseTech Global surged more than 2.3% each. New Zealand's S&P/NZX 50 index remained nearly flat at 13,650.72. Investors were focused on upcoming third-quarter inflation data, due later in the week, for insights into the central bank's policy direction. Markets priced in an 89% probability of a third rate increase this year at the central bank's October 28 meeting.