Australian shares opened lower on Thursday, tracking steep losses on Wall Street as renewed angst about US President Donald Trump’s trade policies reversed a rebound in US mega-cap technology shares.

The S&P/ASX 200 dropped 0.6 per cent, or by 42.9 points in the first thirty minutes of trade, to 7956.1. The All Ordinaries also fell 0.4 per cent. Ten of the index’s 11 sectors were lower, with technology stocks leading losses.

Concerns about the impact of a global trade war resurfaced on Wall Street and sent stocks plummeting ahead of Trump announcing 25 per cent tariffs on auto imports to the US after the market close. The move risks piling pressure on car makers that depend on sales and manufacturing globally. The European Union added to jitters, saying overnight it expects to be hit with double-digit tariffs on April 2.

The Nasdaq closed down 2 per cent, snapping a three-day rally, with Nvidia falling 6 per cent and Tesla 5.6 per cent. Treasury yields climbed. Signs of a rebound in equities had been emerging, with the technology-heavy US index closing higher last week after falling in to correction territory earlier in March.

The ASX 200’s technology sector slumped 2.4 per cent, as bellwethers WiseTech lost 3.3 per cent and TechnologyOne 2.1 per cent. Data centre operator NextDC shed 3.6 per cent. Shares in Australian carmakers edged lower: aftermarket parts maker Bapcor by 1.9 per cent, ARB Corporation 1.8 per cent and Eagers Automotive by 2.5 per cent.

Energy stocks were a bright spot after oil prices continued to climb, bolstered by a fall in US stockpiles that signalled tighter near-term supplies. Oil and gas explorer Woodside advanced 0.8 per cent and Santos edged up 0.3 per cent as brent crude rose to $US73.80.

The Reject Shop rocketed 110 per cent after Canadian value retailer Dollarama lobbed a $259 million bid for the retailer – valuing its shares at a 112 per cent premium to their last closing price.

Stocks on the move

Contact Energy dipped 1 per cent after saying it would appeal a decision blocking the development of its 300 megawatt onshore wind farm in Southland, New Zealand, rejected on concerns the project would damage indigenous flora and fauna.

Nine Entertainment edged up 0.1 per cent after US real estate giant CoStar has lobbed a second, higher offer for Domain, putting $4.43 a share on the table as its “best and final price”. Nine owns controlling 60 per cent of Domain. The latter’s shares were flat.

Clinvuel retreated 1.5 per cent. The drug developer is pursuing its share repurchase program for a further 12 months, intending to double the amount of shares it buys back from stakeholders.