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Australia shares hit 4-mth lows on U.S. political risks; NZ falls

Published 04/11/2016, 12:27 pm
Updated 04/11/2016, 12:30 pm
© Reuters.  Australia shares hit 4-mth lows on U.S. political risks; NZ falls
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By Krishna V Kurup

Nov 4 (Reuters) - Australian shares skidded on Friday after Wall Street fell for the eighth straight session ahead of next week's hotly contested U.S. presidential election.

The S&P/ASX 200 index .AXJO fell 0.7 percent, or 36.65 points to 5,188.90 by 0100 GMT. Earlier, it hit its lowest in nearly 4 months, weighed down by losses in financial and energy sectors.

The benchmark index is on track for a loss of 1.8 percent for the week.

The presidential race between Democrat Hillary Clinton and Republican Donald Trump has narrowed just days ahead of the Nov. 8 election since the re-emergence of a controversy of her use of a private email server during her tenure as secretary of state. by the New York Times/CBS and the Washington Post/ABC showed a slimmer edge for Clinton over Trump, with Clinton leading by 3 percentage points. A Washington Post/ABC poll showed Clinton 2 percentage points ahead.

Investors are also looking out for of U.S. payrolls data later in the day which could impact expectations for a Federal Reserve rate hike next month.

A healthy job reading could be an asset for Clinton in the Nov. 8 election. She has argued that the Obama administration's policies have helped the economy create millions of jobs. Trump wins, it will have a "very poor outcome" on the market, said Hugh Dive, senior portfolio manager at Aurora Funds Management.

However, "with the balance of power between legislative and judicial executive, it really limits what he can actually do," Dive added.

Financial stocks were among the biggest losers, with the S&P ASX 200 Financials (GIC) .AXFJ down 1.2 percent.

National Australia Bank Ltd NAB.AX dropped 5.5 percent as shares trade ex-dividend, while Commonwealth Bank of Australia CBA.AX declined 0.8 percent.

The S&P ASX 200 Energy (GIC) .AXEJ declined 1.2 percent after global oil prices dropped over a record weekly surge in U.S. crude inventories. O/R

Index heavyweight Woodside Petroleum Ltd WPL.AX fell 1 percent, while Origin Energy Ltd ORG.AX was down 2.3 percent.

Mayne Pharma Group Ltd MYX.AX slumped 13.8 percent after it issued an update of an investigation by the U.S. Department of Justice (DOJ). mortgage insurer Genworth Mortgage Insurance Australia Limited GMA.AX posted its biggest percentage loss in nearly 15 months, after it reported third quarter statutory net profit after tax was down 28.7 percent from last year. Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.5 percent or 34.99 points to 6,743.95, on track to finish lower for a fourth straight session. Consumer and technology stocks led the losses on the index.

Trade Me Group Ltd. TME.NZ fell 3.7 percent, and Fletcher Building Ltd. FBU.NZ shed 1.7 percent.

For more individual stocks activity click on STXBZ

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