Australian stocks fell 119 points, or 1.4%, to 8,669 in early October trading, reversing earlier gains after Wall Street ended mostly lower overnight as U.S. Treasury yields rose and financial and defensive shares weakened. Australian home values declined for a sixth consecutive month in September as transaction volumes plunged, while another rate increase this week is expected to produce the country’s worst housing downturn in three decades. Factory activity contracted at its fastest pace in 21 months as new orders weakened amid higher costs and softer demand. Energy minerals, financials, healthcare and logistics led the broad market losses. Lynas Rare Earths dropped 5.5%, Suncorp Group fell 5.1%, PLS Group declined 3.0% and Ampol lost 2.5%, while the four major banks also posted notable declines. Losses were partly moderated after Reserve Bank of Australia Governor Michele Bullock indicated September’s increase could be the final hike following four increases this year. Traders are awaiting August trade data due later today.