Australian shares dropped the most in six weeks on Friday in broad losses after Chinese data confirmed the Asian giant economy was slowing, hitting commodity stocks hard.

China’s economy grew 0.9 per cent in the third quarter, from the second quarter, slightly below forecasts for a 1 per cent gain. Yet, industrial production – an indicator of commodities demand came in at 5.4 per cent, well above the 4.6 per cent expected by analysts, and followed a 4.5 per cent advance the previous month.

The benchmark S&P/ASX 200 fell 0.9 per cent, or 72.7 points, to 8283.2, away from a record closing peak of 8355.9 in the previous session. The All Ordinaries also shaved off 0.9 per cent.

Perth-based fund manager Sam Berridge at Perennial Partners said the result was an early sign that China’s efforts to boost a sputtering economy were bearing fruit.

“If industrial production can string together a couple of months of sequential growth, conviction that the latest round of Chinese stimulus is actually working will strengthen,” he said. He is expecting Beijing to inject additional relief before the year is over.

For the week, the index lifted 0.8 per cent in the second consecutive week of gain. The index has increased 9 per cent this year.

All 11 sectors closed in the red, with utilities leading the pack. The drop was driven by a 6.3 per cent slump in APA Group to $7.16 after its main shareholder, Unisuper, sold a $500 million block trade after markets closed on Thursday.

It was a painful session in commodities as iron ore prices held near $US100 per tonne after tumbling nearly 5 per cent overnight on Thursday. Mining giant BHP receded 2.2 per cent to $42.06, Rio Tinto retreated 0.9 per cent to $117.62 and Fortescue lost 1.9 per cent to $19.54.

Gold miners were among the rare winners of the session after the price of the precious metal broke a fresh all-time high above $US2711. De Grey Mining jumped 1.5 per cent to $1.39.

In corporate news, Flight Centre Travel Group was the index’s biggest laggard after a trading update suggested a profit downgrade was on the horizon. Shares dived more than 20 per cent to $17.2 in the worst one-day drop since the onset of the pandemic.

And, white goods retailer Harvey Norman fell 1.8 per cent to $4.83 after losing a case against the Australian Securities and Investments Commission for misleading ads.

Regal Partners fell 2.8 per cent to $3.78 after being charged by South Korean regulators for breaching securities trading laws.