Australian Shares Drop to Near 4-Week Low

The S&P/ASX 200 Index fell 0.7% on Friday to below 8,280, its lowest level in almost four weeks.

The decline tracked losses on Wall Street following disappointing economic data in the US, which weighed on investor sentiment.

Local stocks also extended losses from the previous session, after stronger-than-expected Australian jobs data led traders to scale back expectations for an interest rate cut in February.

Markets are now pricing in a 50% chance of a Reserve Bank of Australia rate cut in February, a sharp drop from 68% before the jobs report.

Mining stocks were the main contributors to the downturn, driven by weaker metals prices.

BHP Group fell 1.3%, Fortescue dropped 2%, South32 declined 1.6%, Northern Star Resources lost 2.2%, and Pilbara Minerals fell 1.9%.

As a result, the benchmark index is on track to end the week with a loss of nearly 2%.