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Australia shares dragged down by banks, basic materials; NZ lower

Published 08/09/2016, 01:40 pm
Updated 08/09/2016, 01:50 pm
© Reuters.  Australia shares dragged down by banks, basic materials; NZ lower
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By Rushil Dutta

Sept 8 (Reuters) - Australian shares fell to their lowest in close to two months on Thursday as many investors were edgy about global economic prospects, and some encouraging trade data from China did not lift spirits.

All sectors, led by financials and basic materials, wallowed in red seeking cues from global economic events queued up in the day.

The S&P/ASX 200 index .AXJO was at its lowest since mid-July, down 47.55 points, or 0.9 percent, at 5376.7 at 0246 GMT. The benchmark rose marginally on Wednesday.

China August trade data, awaited as a gauge of global demand, topped forecasts as imports recorded their first annual rise since late 2014. But that didn't help Australian shares. own better-than-expected trade numbers elicited no reaction from the markets. European Central Bank meets later in the day and will probably respond to pressure for further easing by announcing an extension to its asset purchase programme by year-end, a Reuters poll showed. is certainly cautiousness in the market," said Tony Farnham, economist with Patersons Securities.

"And I genuinely believe that's going to be something that stays in place for an extended period as we work way through all the central bank meetings."

The Bank of Japan, which meets Sept. 20-21, is split on whether to add stimulus, while weak data from the U.S. recently has reduced chances for a Federal reserve rate rise in September. materials were the index's worst performers, weighed down by BHP Billiton (LON:BLT) Ltd BHP.AX and Rio Tinto (LON:RIO) Ltd RIO.AX , losing 1.7 percent and 1.3 percent respectively.

Gold stocks fell too. Northern Star Resources NST.AX was off 3 percent and St Barbara Ltd SBM.AX 3.6 percent.

The "Big Four" banks lost between 1 and 2 percent, pulling down the financial sector, the benchmark's biggest.

Oil prices extended gains by over 1.5 percent but provided energy stocks no relief. Woodside Petroleum WPL.AX and Oil Search Ltd OSH.AX shed 2 percent and 1 percent respectively. O/R

New Zealand's benchmark S&P/NZX 50 index .NZ50 was 0.4 percent, or 29.66 points, lower at 7,540.96.

The benchmark closed at a record high on Wednesday.

Gains in energy were offset by losses in financial and consumer stocks.

Westpac Banking Corp WBC.NZ was 0.8 percent lower, while Australia and New Zealand Banking Group ANZ.NZ was down 1.8 percent.

Air New Zealand Ltd's AIR.NZ shares slumped as much as 17 pct, their biggest percentage loss in nearly 15 years, as the carrier traded ex-dividend. more individual stocks activity click on STXBZ

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