By Swati Pandey
WELLINGTON, Nov 13 (Reuters) - Australian shares tumbled over 2 percent on Friday, pulled lower by plunging commodity prices as both both gold and copper hit multi-year lows and growing expectations of an interest rate hike in the United States next month.
Investors hammered Santos STO.AX shares for a second day after a A$1.17 billion ($834 million) institutional raising diluted earnings amid falling crude prices. It was last down 7.2 percent. urn:newsml:reuters.com:*:nS9N0YP011
In a broad sell-off, the S&P/ASX 200 index .AXJO skidded 100.99 points to 5,023.1 by 2135 GMT, its lowest level since Sept. 29. The benchmark is on track for its worst weekly performance in more than two months.
"We've seen big falls in commodities overnight and there is a prospect of higher interest rates in the United States. Overall the market is reacting on the backdrop of a softer global economy," said Julia Lee, market analyst at Bell Direct.
"The next psychological level for the market is 5,000 and we are not too far from that. November tends to be a seasonally weak month but we are expecting to see another rally into December."
Global miner BHP Billiton (L:BLT) BHP.AX was battered for a third straight day, hitting a 7-year trough, following a fatal dam disaster at a joint venture mine in Brazil. urn:newsml:reuters.com:*:nL1N13723X It was last down 3.5 percent at A$19.90.
Rio Tinto (L:RIO) RIO.AX was off 2.3 percent, while Fortescue Metals FMG.AX slipped 5.5 percent. Energy-related shares were in the red as well with Woodside Petroleum WPL.AX down 3.4 percent and Origin Energy ORG.AX slipping more than 4 percent.
Major banks Commonwealth Bank CBA.AX and ANZ ANZ.AX fell over 2 percent each. Westpac WBC.AX was down 1.5 percent while National Australia Bank was off 1.6 percent.
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New Zealand's benchmark NZX 50 index .NZ50 slipped 0.2 percent or 12.99 points to 6,010.97, pulling further away from a record peak hit earlier this week.
It is on track to end the week about 1 percent lower after a steep fall on Tuesday, which would be its worst performance since the week ended Oct. 2.
For the year so far, the index is still up nearly 8 percent compared with a drop of more than 6 percent for its Australian cousin.
a2 Milk Company remained the top most-traded stock for a fourth straight session, but fell on Friday after a strong 3-day run. It was last down 2.2 percent at NZ$0.89.
New Zealand Refining Company NZR.NZ , the top performer on the index, hit a 3-1/2 year high on Friday on stronger production guidance for the year. urn:newsml:reuters.com:*:nWNBS01MCM
($1 = 1.4031 Australian dollars)