SYDNEY

AUSTRALIAN shares dropped 0.9% yesterday, pulled down by weaker commodities’ prices and broader concern over rising tensions on the Korean peninsula. Strong Australian retail and building data failed to lift the market, as the startling numbers led investors to further lengthen the odds of any more cuts in interest rates this cycle.

“It (the market) tried halfheartedly to rally after some very strong February building approval and retail sales numbers, but could not sustain the goodwill,” said Chris Weston, chief market strategist at IG Markets in Melbourne.

Weston also noted that traders have been discussing a large sell order being executed through the market by a fund.

The S&P/ASX 200 Index lost 44.18 points to close at 4,913.50. The benchmark dropped 0.6% on Wednesday. — Reuters