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Australia shares slump most in 2-1/2 years as global equities tumble

Published 06/02/2018, 04:51 pm
Updated 06/02/2018, 05:00 pm
© Reuters.  Australia shares slump most in 2-1/2 years as global equities tumble
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* Aussie shares post biggest pct drop since Sept. 29, 2015

* Benchmark at a near 4-month low

* Only stock turns green amid broad-based fall (Updates to close)

Feb 6 (Reuters) - Australian shares suffered their worst single-day drop in nearly 2-1/2 years on Tuesday as worries about stronger inflation and higher interest rates prompted global investors to take profits from one of the longest bull runs in history.

The S&P/ASX 200 index .AXJO closed down 3.2 percent or 192.9 points to 5,833.3, a four-month low. The benchmark declined 1.6 percent on Monday.

Declining issues outnumbered advancing ones on the benchmark by a 6.4-to-1 ratio.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slid 4.2 percent to an over one-month low, after Wall Street suffered its biggest decline since 2011. GLOB/MKTS

Banks accounted for most of losses, with the Australian financial index .AXFJ dipping 3.3 percent to an near five-month low.

All the "big four" banks fell about 3 percent, and were among the biggest drags on the benchmark.

Macquarie Group Ltd MQG.AX , Australia's biggest investment bank, declined to a near eight-week low, despite forecasting a record profit for fiscal 2018. also fell, regardless of a strengthening in iron ore prices. Global miner BHP BHP.AX slipped 2.7 percent to its lowest since Dec. 2017, while its rival Rio Tinto (LON:RIO) Ltd RIO.AX declined 1.4 percent. IRONORE/

Meanwhile, boosted by safe-haven buying, gold miner RSG.AX Regis Resources Ltd RRL.AX was the only stock to trade in the black out of the 200 stocks in the Australian benchmark. GOL/

Consumer stocks also fell, with data showing that Australian retail sales eased more than expected in December but still posted a smart rebound in the last quarter of 2017 in a optimistic sign for household consumption and economic growth. central bank struck an upbeat tune about the country's economy on Tuesday, supported by solid economic data in recent weeks. As expected, it held rates steady at 1.5 percent at its first meeting of 2018. Zealand markets were closed for a public holiday.

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