Australian shares slip as bank losses outweigh mining gains

Australian shares experienced a decline on Monday, as financial losses surpassed gains in mining stocks bolstered by higher commodity prices. The S&P/ASX 200 index slipped 0.5% to 8,753.10, marking its worst session since October 14. Investors are closely monitoring the upcoming third-quarter consumer price inflation data, expected on Wednesday, to gauge the Reserve Bank of Australia's future monetary policy direction.

Markets suggest a greater than 60% likelihood of a fifth interest rate hike this year, potentially driving the cash rate to 4.85% during the November 3 meeting. Financials suffered the steepest drop since October 1, with all four major banks experiencing declines ranging from 1.6% to 1.9%. Technology stocks also plummeted, with some reaching a six-month low, mirroring weakness in Wall Street peers on Friday.

WiseTech Global and Xero tumbled 1.3% and 1.9%, respectively. Mining stocks, however, narrowed their losses, advancing 1.4% and breaking four consecutive loss sessions, as iron ore and copper prices improved. BHP and Fortescue climbed more than 1.3%. Gold stocks saw a rise, gaining up to 2.1%, tracking the uptick in bullion prices.

Evolution Mining, Northern Star Resources, and Ramelius Resources all surged between 1.1% and 2.6%. Energy stocks also climbed 1.4% as oil prices increased, despite a minor dip in commodity prices. Among individual stocks, NEXTDC was among the biggest losers, falling over 3% after announcing its CEO would forgo his fiscal 2027 bonus due to the firm downgrading its outlook last week. Meanwhile, New Zealand markets were closed for a public holiday on Monday.