* Australian energy stocks up for fourth session
* Financials drag benchmark stock index
* NZ cenbank orders lenders to skip dividend payments
By Shreya Mariam Job
April 2 (Reuters) - Australian shares fell on Thursday, erasing most of the gains made in the previous session, as fears over sharply rising coronavirus cases in the United States and prospects of a deep global recession drove investors out of riskier assets.
Investors were spooked by U.S. President Donald Trump's warning of a "painful" two weeks ahead in fighting the coronavirus, with a mounting death toll that could stretch into hundreds of thousands despite strict social distancing measures. S&P/ASX 200 index .AXJO fell 2.5%, or 129.50 points, to 5,129.10 by 0035 GMT, after a 3.6% gain on Wednesday.
"Although we have seen stocks moving off their lows, this has been driven by technicals and temporary market dynamics, with the trend still skewed to the downside," said Kyle Rodda, a market analyst at IG Markets.
Global financial markets faced a gruelling first quarter to the year due to the epidemic, although central banks and governments across the globe have been doling out unprecedented measures to keep their economies afloat.
The New Zealand central bank ordered banks to skip dividend payments and redeem capital notes following a similar move by the European Central Bank last week. Reserve Bank of New Zealand's move has put pressure on Australian banks which own units in the neighbouring country, and has also raised concerns about whether the local central bank would adopt similar measures.
The "Big Four" banks declined in a range of 4.1% to 5.4%.
Separately, Westpac Banking Corp WBC.AX said it was entrusting acting chief executive officer Peter King with a permanent role for a period of two years. The move comes as the company struggles to stay afloat amid the pandemic and money laundering charges. miners BHP Group Ltd BHP.AX and Rio Tinto (LON:RIO) Ltd RIO.AX dropped 1.9% and 2.3%, respectively.
Meanwhile, gold stocks .AXGD climbed 2.7%, supported by a rise in gold prices. Newcrest Mining NCM.AX , the country's largest-listed independent gold miner, gained 2.8%.
Energy stocks .AXEJ climbed about 0.3%, extending gains into a fourth session, as a 5% jump in U.S. crude oil futures lent some support. O/R
Santos Ltd STO.AX gained 3.9% and Oil Search OSH.AX rose 3.5%.
New Zealand's benchmark S&P/NZX 50 index .NZ50 fell 1.9%, or 187.83 points, to 9,738.25.
NZ-listed shares of Australia and New Zealand Banking Group ANZ.AX fell 5.7%, while those of Westpac Banking Corp WBC.AX dropped 5%.