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Australia shares flat as investors wait on key U.S. rates clue

Published 06/11/2015, 01:10 pm
Updated 06/11/2015, 01:20 pm
© Reuters.  Australia shares flat as investors wait on key U.S. rates clue
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* U.S. non-farm payrolls expected later on Friday

* Investors wait for cues on December U.S. rate hike

* Resources lower after overnight commodity fall (Adds analysis, quotes, stocks on the move)

SYDNEY/WELLINGTON, Nov 6 (Reuters) - Australian shares traded flat on Friday as investors took a breather ahead of crucial U.S. economic data due later in the day and as declining commodity prices sent resources stocks lower.

The U.S. Federal Reserve has said it is considering a December rate hike, and a monthly U.S. jobs report, due later Friday, is seen as a central factor in its decision-making.

The S&P/ASX 200 index .AXJO fell as much as 0.8 percent but rebounded by mid-session to be up 3.2 points or less than 0.1 percent higher by 0148 GMT. The benchmark is down 4 percent so far this year.

"There's very little commitment in the market," said CMC Markets chief strategist Michael McCarthy, noting unusually low volumes.

"That (non-farm payrolls announcement) could speak directly to the intentions of the U.S. Fed, and for that reason a lot of investors and traders are now sitting on the sidelines."

Iron ore major BHP Billiton (L:BLT) BHP.AX was down 3 percent after the commodity tumbled overnight amid concerns about whether demand will improve from No. 1 export country China. Rival Rio Tinto (L:RIO) was flat, while BHP spin-off South32 S32.AX lost 0.5 percent. Gold miner Newcrest lost 1.6 percent.

Energy stocks also fell in line with the oil price. Woodside Petroleum WPL.AX declined 3 percent, Santos STO.AX eased 2 percent and Origin Energy dropped ORG.AX 2.3 percent.

Australia and New Zealand Banking Group ANZ.AX fell the most in a mixed financial sector, down 2.6 percent after trading ex-dividend. Westpac Banking Corp WBC.AX fell 1.5 percent, Commonwealth Bank of Australia CBA.AX rose 0.4 percent and National Australia Bank NAB.AX slipped 0.3 percent.

Ports and rail operator Asciano AIO.AX rose 6 percent after Canada's Brookfield Asset Management bought a 19 percent stake, upping the competition in a takeover battle. Australian port company Qube Holdings QUB.AX , which also wants to buy Asciano, fell 3 percent.

New Zealand's benchmark NZX 50 index .NZ50 was steady after a 3-day rally that helped it scale an all-time high of 6,076.72 points.

The New Zealand benchmark is set to end the week about 1.5 percent higher, having already risen about 9 percent so far this year.

Cloud-based accounting firm Xero Ltd XRO.NZ was the top performer on the index, rising for a second day after earnings came in as expected. urn:newsml:reuters.com:*:nL3N12Z6B3

Heartland New Zealand jumped over 3 percent to its highest level since mid-May after it said it would merge with wholly-owned subsidiary Heartland Bank to help improve efficiency. urn:newsml:reuters.com:*:nWNBS01KYU

For more individual stocks activity click on STXBZ

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