News: XIJ Australian shares reverse early gains on recession fears

Oct 3 (Reuters) - Australian shares reversed early gains on Monday, as investors fretted that aggressive interest rate hikes to bring down red-hot inflation would tip the global economy into recession.

The S&P/ASX 200 index (xjo) fell 0.87% to 6,417.6 by 0056 GMT, after opening 0.5% higher on strong commodity prices. The benchmark closed 1.2% lower on Friday, wrapping up its worst month since June.

Interest rate-sensitive technology stocks .AXIJ fell 2.2%, with software firm Novonix (NVX) tumbling 4.8% and Megaport (MP1) skidding 4.6%.

Financials .AXFJ dropped nearly 1%, with three of the "Big Four" banks shedding more than 1% each.

Energy .AXEJ was the only sector trading in positive territory with a 0.2% gain, as oil prices jumped on OPEC+ considering cutting output of up to 1 million barrels per day at a meeting this week to support the market.

Sector heavyweights Woodside Energy (WDS) and Santos (STO) climbed 2.6% and 3%, respectively.

Global miner Rio Tinto (RIO) was down 0.1% after calling for the resignation of Peter Mansell, the chairman of Energy Resources Of Australia (ERA) , to address the material cost and schedule overruns of the critical Ranger uranium mine.

ASX-listed shares of Janus Henderson (JHG) declined 3.8% after the London-based asset manager announced changes to its board, including the retirement of chairman Richard Gillingwater.

Meanwhile, baby formula maker Bubs Australia (BUB) rose nearly 3% on seeking permanent access to the U.S. market after the Food and Drug Administration (FDA) spelled out how companies that have been filling a temporary shortage can become long-term suppliers.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index (nz50) fell 0.95% to 10,960.5.