Almost $60b wiped from ASX in bond-linked bloodbath
By Adrian Black
Australia's stock market has had its worst session in months, as bond market jitters weigh. -AAP Image
Australia's share market has erased almost $60 billion in value in a day as soaring bond yields foreshadow higher global borrowing costs, hammering cyclical stocks.
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The S&P/ASX200 tumbled 174.9 points on Thursday, down 1.99 per cent, to 8,614.4, as the broader All Ordinaries lost 174.8 points, or 1.95 per cent, to 8,794.4.
The move wiped $59.67 billion from the top-500 stocks' combined $3.1 trillion market cap.
Investors had nowhere to hide as all 11 sectors bled lower.
Even defensive groups such aslike health care and consumer staples dropped more than two per cent, along with financials segment, real estate trusts and energy stocks.
The plunge came as global bond yields continued to track inflation risks higher, elevating future borrowing costs and constraining the growth outlook, hitting the cyclical-dominated ASX200 particularly hard.
The Australian dollar is buying 69.48 US cents, down from 69.71 US cents on Wednesday at 5pm.
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