Australia shares retreat as US banking woes hit financials, insurers

Oct 17, 2025, 13:02 GMT+7
Key points:

• ASX 200 retreats from record closing high
• Financials log weakest session in three weeks
• QBE ends lowest in six months
• Gold stocks hit fresh record

By Adwitiya Srivastava
Reuters - Australian closed lower on Friday as worries over credit stress at U.S. regional banks rattled sentiment and prompted investors to take profits in local lenders trading at elevated valuations.
The S&P/ASX 200 indexfell 0.8% to finish at 8,995.30 points, retreating from a record closing high of 9,068.40 points notched the previous day.
The benchmark crossed 9,100 points for the first time on Thursday, and managed to eke out marginal gains for the week.
U.S. regional banks sank overnight after two auto-sector bankruptcies reignited credit quality fears, unsettling investors already on edge over U.S.-China trade tensions, government shutdown risks and stretched valuations following the AI-driven rally.
Australia's financials sub-indexslipped 1.2% after two sessions of gains, with three of the "Big Four" banks down as much as 0.9%.
"Primarily a weak Wall Street lead and a bit of profit taking after we hit 9,100 yesterday is moving the market today," said Kyle Rodda, a senior financial market analyst at Capital.com.
Insurers tumbled, with top player QBEsliding over 9% and rivals IAG and Suncorpdropping as much as 6.2%.
QBE, which has heavy exposure to North America, was the biggest drag, ending at an over six-month low.
"QBE has global operations and is more exposed to non-domestic macroeconomic conditions than peers," said Luke Winchester, a portfolio manager at Merewether Capital.
Still, Shane Oliver, chief economist at AMP, said the problems at the two U.S. regional banks appeared to be specific to the firms and not systemic.
Meanwhile, gold minersextended their rally as bullion surged past $4,300 an ounce, lifting the sub-index nearly 8% for the week.
New Zealand's benchmark S&P/NZX 50 indexfell 0.7% to finish the session at 13,289.21 points.

Sumber : Reuters