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Australia, NZ shares slip as Brexit uncertainty weighs

Published 21/10/2019, 11:51 am
© Reuters.  Australia, NZ shares slip as Brexit uncertainty weighs
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* Brexit vote delay creates uncertainty in markets

* RBA review of buy-now-pay-later sector dents tech stocks

* Rare earths miner Lynas Corp soars on upbeat qtly report

By Rashmi Ashok

Oct 21 (Reuters) - Australian shares edged lower on Monday as fresh uncertainty over Brexit reined in risk sentiment, while digital payments stocks slipped further on the central bank's planned review of some practices in the buy-now-pay-later sector.

British Prime Minister Boris Johnson's plan to put his Brexit withdrawal deal to the UK parliament on Saturday was derailed after lawmakers voted to withhold a decision on the deal, forcing him to seek a third postponement of Britain's departure from the bloc. S&P/ASX 200 index .AXJO fell 14.5 points to 6,635.6 by 0007 GMT. The benchmark fell 0.5% on Friday.

"Focus will be on the House of Commons vote again in the next couple of days and also how the EU responds. This is keeping an element of uncertainty in the markets, which doesn't help," said Stephen Daghlian, market analyst at CommSec.

Meanwhile, technology stocks .AXIJ continued their sharp fall after the Reserve Bank of Australia said on Thursday it would in 2020 review "policy implications" from no surcharge rules in the hugely popular buy-now-pay-later (BNPL) industry . https:// of BNPL bellwether Afterpay Touch Group Ltd APT.AX slipped as much as 8.1%, although the company said on Monday it was not currently part of the central bank's review. shares retraced to be down just 2.2%, but the stock has still fallen more than 20% in the past four sessions since brokerage UBS initiated coverage of Afterpay with a target price that was half the value of the company's close on the previous day.

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Software company Wisetech Global Ltd WTC.AX slipped as much as 13.1% before requesting a trading halt to respond to claims made in a research report.

A weaker U.S. dollar continued to put a cap on healthcare stocks, most of which earn their revenue overseas. CSL Ltd CSL.AX shed 0.7% while Cochlear Ltd COH.AX gave up 1.2%.

Offering some relief, resource stocks .AXMM inched higher, with rare earths miner Lynas Corp LYC.AX surging 7.1% after an upbeat quarterly report.

The company posted a jump in sales revenue against the preceding quarter, and noted increased interest from magnet makers in the United States and Europe for long-term contracts of its products. the Tasman, New Zealand's benchmark S&P/NZX 50 index .NZ50 reversed gains to slip 0.2% or 23.72 points to 11,043.4.

Tourism Holdings THL.NZ tumbled 13% and was on track for its worst daily drop in over 6 months, after it said it would not provide specific guidance for fiscal 2020 due to volatility in the U.S. market.

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