Australia's share market is headed for its worst week in almost two years after investors despaired at confirmation of impending rate rises in the US.
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The ASX had its fourth consecutive losing day and dropped 1.77 per cent on Thursday after a US Federal Reserve policy meeting confirmed rates may rise as early as March.
The heaviest falls on the Australian market were in technology stocks, which slumped almost five per cent.
There were losses of more than three per cent for consumer discretionaries, healthcare and telecommunications.
Energy shares were best and rose 2.11 per cent. Brent oil prices improved to almost $US90 per barrel as Russia stoked fears of invading Ukraine by herding troops at the border.
The benchmark S&P/ASX200 index closed down 123.3 points, or 1.77 per cent, to 6838.3 points.
The All Ordinaries index closed lower by 133.6 points, or 1.84 per cent, to 7114.5 points.
The market has lost 4.7 per cent in a shortened trading week due to Australia Day.
The last weekly fall like this was in the first few months of the pandemic.
Experts have tipped the Reserve Bank to join the rate increases this year after inflation exceeded forecasts.
SG Hiscock and Company portfolio manager Hamish Tadgell said higher rates would have implications for how much growth a company could achieve, and mean greater costs.
The wave of Omicron coronavirus infections further clouded the outlook, he said.
Mr Tadgell was keen to hear more from business leaders about these challenges during the February earnings season.
On the ASX, Beach Energy was a major beneficiary of the troubles with Russia and rose 8.81 per cent to $1.42.
Oil giant Santos rose 3.57 per cent to $6.96.
Among the biggest losers was Kogan. The company revealed supply chain difficulties from the pandemic had impacted sales and earnings.
Company leaders tipped first-half gross profit would be down 4.4 per cent on the same period the year prior.
Earnings were tipped to fall 58 per cent or $30 million.
Kogan dropped 12.27 per cent to $6.15.
Cargo software vendor WiseTech Global plummeted almost 10 per cent to $43.31.
Premier Investments said its retail group was on track for first-half earnings to improve by four to five per cent.
The company claimed this would be a strong result as its stores such as Smiggle and Peter Alexander were closed for more than 42,000 days due to lockdowns.
Premier is closing four stores in the Sydney CBD as it tries to negotiate cheaper rents amid the pandemic.
Shares were up about two per cent to $27.10.
In financials, Genworth Mortgage Insurance retained its role as sole provider of lenders mortgage insurance to the Commonwealth Bank.
Investors raised the shares by 13.76 per cent to $2.48.
ANZ was best of the major banks and added 1.12 per cent to $27.07. The Commonwealth was worst of the group and shed 1.75 per cent to $93.78.
A UK court approved BHP's plan to exchange its UK shares for Australian ones as it consolidates on the ASX.
The consolidation is expected to be finished by January 31.
BHP was up 1.42 per cent to $45.67.
Fortescue Metals lost 0.1 per cent to $19.48. Rio Tinto gained about two per cent to $109.29.
The Australian dollar was buying 70.72 US cents at 1726 AEDT, lower from 71.39 US cents at Tuesday's close before the market holiday.
ON THE ASX
* The benchmark S&P/ASX200 index closed down 123.3 points, or 1.77 per cent, to 6838.3 points on Thursday.
* The All Ordinaries index closed lower by 133.6 points, or 1.84 per cent, to 7114.5 points.
* At 1726 AEDT, the SPI200 futures index was up 13 points, or 0.19 per cent, at 6722 points.
CURRENCY SNAPSHOT
One Australian dollar buys:
* 70.72 US cents, from 71.39 cents on Tuesday
* 81.08 Japanese yen, from 81.27 yen
* 63.01 Euro cents, from 63.15 cents
* 52.66 British pence, from 52.99 pence
* 107.08 NZ cents, from 106.98 cents.
Australian Associated Press