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Australia shares close lower as financials extend losses; NZ down

Published 01/11/2016, 05:57 pm
Updated 01/11/2016, 06:00 pm
© Reuters.  Australia shares close lower as financials extend losses; NZ down
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Nov 1 (Reuters) - Australian shares closed lower on Tuesday as financials were hit by worries over their earnings outlooks, while sentiment was also generally cautious amid uncertainty over the U.S. presidential election outcome. Reserve Bank of Australia's decision to stand pat on rates, a widely expected move, also had little impact on trading. Markets expect possibly one more cut sometime next year, but many see the chances of taking the record-low 1.5 percent cash rate further down as being slim at this stage. S&P/ASX 200 index .AXJO dropped half a percent, or 27.232 points, to close at 5,290.5.

The financial index .AXFJ lost ground in four of the last five sessions, shedding 0.5 percent in the session, partly underscoring worries about slowing growth in the sector.

Australia's biggest general insurer, Insurance Australia Group IAG.AX dipped 0.5 percent, registering a fifth straight session of losses, while Australia and New Zealand Banking Group ANZ.AX fell over a percent.

ANZ, which releases full-year financial results on Thursday, issued a profit warning last week. AMP Ltd AMP.AX , Australia's biggest life insurer, also warned in the same week of a big writedown. stock closed 1.1 percent lower, its fifth straight session of declines.

New Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.4 percent, or 30.19 points, to finish the session at 6,930.49.

The number of declining issues were twice the advancing ones.

Healthcare and consumer stocks led the losses, with Fisher & Paykel Healthcare Corp FPH.NZ declining 1.1 percent, while SKY Network Television SKT.NZ hit a near five-month low at NZ$4.5.

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