ASX plunges as Trump tariffs trigger healthcare, tech stock sell-off
The benchmark ASX 200 slumped 80.80 points or 0.92 per cent to 8662, while the broader All Ordinaries fell 81.90 points or 0.91 per cent to 8917.10.
Australia's dollar gained against the greenback and is now buying 64.25 US cents.
On an overall sea of red, 10 of the 11 sectors finished in the red.
The utilities sector was the only sector to trade higher.
Healthcare shares were among the major market falls after Mr Trump wrote letters to the 17 largest US drug companies demanding they lower prices for local consumers, making up the difference in other foreign countries.
CSL slumped 2.53 per cent to $264.05, Pro Medicus dropped 2.45 per cent to $313.99 and Sigma Healthcare finished in the red down 1.04 per cent to $2.86.
Technology stocks also led the falls.
WiseTech Global dropped 2.55 per cent to $116.34, Xero fell 3.45 per cent to $174.75 and Technology One slumped 2.17 per cent to $40.19.
Three of the big four banks also slumped. CBA led the losses down 1.60 per cent to $175.06, NAB dropped 1.21 per cent to $38.44 and Westpac slipped 1.09 per cent to $33.45.
ANZ bucked the trend gaining 0.49 per cent to $30.87.
The second announcement that rattled Asian markets was an announcement from the President around tariffs.
While Australia will only face the 'base rate' of 10 per cent, many of the US trading partners will face higher levies, which is feared to slow down global growth.
According to Commonwealth Bank's senior economist and senior currency strategist Kristina Clifton, US tariffs are now at their highest level since the 1930s.
'We expect the large increase in the US's global effective tariff rate will raise US business and consumer prices, weighing on purchasing power and demand,' Ms Clifton wrote in an economic note.
But the impact on Australia is tipped to be relatively subdued.
'We estimate Australian GDP will be just 0.3 per cent lower over a few years because of the tariffs,' Ms Clifton said.
Only about five per cent of Australia's exports are to the US and Australia's tariff rate is a relatively low 10 per cent.
In company news, Star Entertainment will be forced to pay about $41m back to Hong Kong-based business partners, Chow Tai Fook Enterprises and Far East Consortium after a deal to buy the newly opened Queen's Wharf hotel and casino complex fell through.
In a statement to the ASX on Friday, Star Entertainment confirmed it was 'unable to reach an agreement,' and will now be liable for almost $1bn in debt for the precinct.
Shares plunged 16.36 per cent to $0.09. Five ways Trump's tariffs will impact youHouse prices defy RBA rate hold
Shares in diversified investment house Soul Patts slipped 0.64 per cent to $40.32 after announcing preliminary, unaudited net asset values to come in between $12.18 to $12.68bn for the year ending July 31.
Resmed shares flirted with a record high after the medical sleep device maker announced profits that beat market expectations.
Shares jumped 1.01 per cent to $42.88.
Originally published as Banks, healthcare drop on two Trump moves
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