AU Evening Wrap: ASX Tumbles 2.3%; Major Banks Shares Fall

Australian shares plunged 2.3 per cent on Friday as a sell-off in US bank stocks sparked by concerns over the solvency of $SVB Financial (SIVB.US)$ spilled across local banks, with $CommBank (CBA.AU)$ shares down 3.3 per cent, $National Australia Bank Ltd (NAB.AU)$ off 3 per cent and Westpac losing 2.6 per cent.

The benchmark Index the $S&P/ASX 200 (.XJO.AU)$ fell 166.4 points to 7144.7 as the materials, energy, and financials sectors all tumbled.

Lithium producer $Mineral Resources Ltd (MIN.AU)$ retreated 6.2 per cent to $83.50 per share. $Pilbara Minerals Ltd (PLS.AU)$ also tumbled 7 per cent to $3.98 per share. The falls come as lithium prices extended their losses in 2023 as spot prices in China fell to ¥346,500 ($US49,757) at a one-year low.

Shares of short seller targets $Piedmont Lithium Inc (PLL.AU)$ and $Atlantic Lithium Ltd (A11.AU)$ closed down 6.3 per cent and 23.1 per cent on the ASX respectively after the pair responded to a report by Blue Orca Research.