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Australia shares end lower as new COVID-19 cases emerge over weekend

Published 18/01/2021, 06:39 pm
Updated 18/01/2021, 06:42 pm
© Reuters.

* BHP, Rio Tinto (LON:RIO) drop; quarterly output results eyed

* QBE Insurance tumbles after UK court's COVID-19 policy ruling

* Electronics retailer JB Hi-Fi jumps on upbeat profit forecast

* NZ index slips 1.4%, power companies lead losses (Adds details of new cases from weekend, drop in travel-related stocks)

Jan 18 (Reuters) - Australian shares ended lower on Monday, as the emergence of new COVID-19 cases in New South Wales over the weekend and news the country may not fully reopen its international borders this year despite the vaccination drive dented sentiment.

The S&P/ASX 200 index .AXJO slipped 0.8% to 6,663 at the close of trade, in line with a risk-off sentiment across broader Asia amid worries over rising global coronavirus cases.

Six locally acquired cases were registered on Sunday in the New South Wales state, all close contacts of a man who tested positive on Friday in a western Sydney suburb. But no locally acquired cases were reported in Australia on Monday. authorities investigated the source of the latest outbreak in the Sydney suburb, the head of Australia's health department warned the country may not fully reopen its international borders this year even if most of the population is vaccinated against coronavirus. news drove shares of travel-related stocks such as Qantas QAN.AX , Webjet WEB.AX and Flight Centre Travel Group FLT.AX down 1% or more during the session.

Local authorities were also looking at potential adverse effects of the Pfizer (NYSE:PFE) PFE.N vaccine after Norway reported a small number of deaths in old people who received the shot.

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Dour sentiment drove mining stocks .AXMM lower despite a rise in copper and iron ore prices, with heavyweights BHP Group BHP.AX and Rio Tinto RIO.AX shedding around 3% and 1.5%, respectively.

Investors will shift focus to quarterly production numbers from both the mining giants over the next two days to gauge top commodity buyer China's appetite for the products.

Energy stocks .AXEJ slipped in line with crude prices, with Woodside Petroleum WPL.AX losing 0.5% and Santos STO.AX giving up 0.8%.

QBE Insurance Group QBE.AX fell nearly 6% and was among the index's biggest losers after the United Kingdom's top court ruled in favour of policyholders on COVID-19 business interruption claims. Hi-Fi JBH.AX was a bright spot in the index, rising 3.8% after the electronics retailer forecast a surge in half-year profit on the back of strong demand for home appliances and strong online sales. of competitor Harvey Norman Holdings HVN.AX also jumped 3.7% after JB Hi-Fi's outlook update. Zealand's benchmark S&P/NZX 50 index .NZ50 fell 1.4% or 186.3 points to finish the session at 12,838.36.

Meridian Energy MEL.NZ and Contact Energy Ltd CEN.NZ closed down 5.5% and 3.9%, respectively.

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