The market opened softly and then was sold off sharply after the latest Chinese CPI numbers hit the airwaves, surprising to the upside.
CPI for January year on year came in at 4.5%, a full half a per cent higher than expectations, and 0.4% more than December.
The data means Beijing will be more inclined to maintain a tight monetary policy, which is not good for our big miners and exporters.
BHP and FMG are down more than 2%, whilst RIO is off 1.1%.
Telstra is down more than 2% after reporting 1H profit slightly below analysts’ expectations.
News Corporation announced its December quarter earnings, showing a net profit of $984.49 million – up 65% compared to the same quarter a year ago.
The earnings rise came despite a $33.44 million cost for restructuring the group’s British and Australian newspaper divisions.
Around the region, Asian markets are mainly weaker; the Hang Seng and Nikkei are down 0.7% each.