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Australia Stocks Slump Most Since 2020 on Inflation, Fed Worries

  • The S&P/ASX 200 gauge falls 3.6%, the most since May 2020
  • New Zealand stocks fall 2.6% to enter bear market territory
Updated on

Australia’s key stock index tumbled the most in more than two years, joining a global selloff on growing bets for sharper Federal Reserve interest-rate hikes to fight inflation.

The S&P/ASX 200 Index closed down 3.6% on Tuesday as trading resumed after a holiday. The move comes after US stocks hurtled into a bear market and global bonds plunged on Monday as inflation and recession fears rattled investors.