AU Evening Wrap: ASX Closes 1.2% Lower, Liontown Soars Amid Bid Talk

The $S&P/ASX 200(.XJO.AU)$ fell 1.2 per cent at the closing bell, in line with Asian bourses, on worries about higher US interest rates and a slowing Chinese economy.

Exacerbating losses were a raft of companies, including $BHP Group Ltd(BHP.AU)$, $Super Retail Group Ltd(SUL.AU)$ and $Perpetual Resources Ltd(PEC.AU)$, trading ex-dividends.

All 11 sectors ended in the red, with mining companies in the lead. $Rio Tinto Ltd(RIO.AU)$ fell 2.5 per cent, $Fortescue Ltd(FMG.AU)$ retreated 2.2 per cent and BHP Group tumbled 5.2 per cent, the worst drop in a year. Further undermining the sector was a sharp drop in iron ore futures.

Shares in $Qantas Airways Ltd(QAN.AU)$ skidded 2.3 per cent and hit intraday their lowest level since October last year.

Lithium miner and takeover target $Liontown Resources Ltd(LTR.AU)$, however, soared 9 per cent on speculation that Australia's richest person, Gina Rinehart, was behind the buying. US lithium heavyweight Albemarle lobbed a non-binding $3 a share bid for Liontown, valuing the company at $6.6 billion.

Shares in shipbuilder $Austal Ltd(ASB.AU)$ jumped 3.2 per cent after it won a $143 million contract with the US Navy.

$Bank of Queensland Ltd(BOQ.AU)$ rose 0.7 per cent. The regional lender plans to redeem all of its $275 million subordinated notes maturing in November 2028.