Australian Shares Tumble as Commodity Slump Drags ASX 200 Down 1.6% on June 2

Australian equities slumped sharply on June 2, 2026, with the S&P/ASX 200 index dropping 1.6% to 7,150.3, its steepest one-day decline in three weeks. Heavy selling in mining and energy stocks led the retreat, tracking overnight weakness on Wall Street and a broad decline in commodity prices. Major miners BHP Group and Rio Tinto fell 2.3% and 2.1%, respectively, as iron ore futures extended losses amid worries over Chinese demand. Oil and gas producers Woodside Energy and Santos shed 2.8% and 2.5%, pressured by a 3% slide in crude prices. The All Ordinaries index lost 1.5%. The broad sell-off wiped roughly A$28 billion from the market’s value, with all 11 sectors finishing in negative territory. Investors also braced for the Reserve Bank of Australia's policy statement due later in the week, which could signal further tightening after recent inflation data.