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Australia shares close at 9-mth low; NZ ends higher

Published 04/03/2020, 05:21 pm
Updated 04/03/2020, 05:28 pm
© Reuters.  Australia shares close at 9-mth low; NZ ends higher
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* Australia Q4 GDP grows 0.5% q/q

* "Big Four" banks lose between 2.5% and 3.7%

* Tech sub-index tracks Wall Street losses, falls most (Updates to close)

By Sameer Manekar

March 4 (Reuters) - Australian shares ended at a nine-month low on Wednesday as investors overlooked faster-than-expected economic growth and a surprise rate cut by the U.S. Fed amid growing fears of a global economic fallout from the coronavirus outbreak.

The S&P/ASX 200 index .AXJO lost 1.7% to finish at 6,325.40, its lowest since June.

The Australian economy expanded by 0.5% in the last quarter, more than a Reuters poll prediction. However, the growth outlook for the current quarter is overcast with travel restrictions due to the coronavirus outbreak. the economic impact of the coronavirus broadening from the initial tourism impact to supply chain disruptions, extended weakness in Chinese demand and weaker domestic demand, the risk of a recession has increased sharply," Felicity Emmett, senior economist at ANZ Research, said in a note.

Overnight, the U.S. Federal Reserve in a surprise decision cut rates by half percentage point, but failed to lift investor confidence, sending all three major U.S. indexes down nearly 3%. .N

In Australia, the heavyweight financials sub-index .AXFJ led the declines, finishing in the red for an eighth consecutive session, with all the "Big Four" banks losing between 2.5% and 3.7%.

Top lender Commonwealth Bank of Australia CBA.AX closed at a four-month low, losing 2.5%, while No. 2 bank Westpac Banking Corp WBC.AX shed 3.1%.

Healthcare firms .AXHJ , which conduct a majority of business overseas, declined 2.3% on a strengthening Australian dollar. AUD/

Index heavyweight CSL Ltd CSL.AX and U.S.-based Resmed Inc RMD.AX lost 2.2% and 1.5%, respectively.

The technology sub-index .AXIJ fell 4.2%, tracking overnight losses on Wall Street. .N

Software-as-a-service firm Xero Ltd XRO.AX fell 3.5%, while buy-now-pay-later company Afterpay Ltd APT.AX lost 4.2%.

The energy sub-index .AXEJ hit a over one-year closing low, with heavyweights Woodside Petroleum WPL.AX and Santos Ltd STO.AX closing down 3.4% and 1.9%, respectively.

Among gainers, gold stocks .AXGD rose 4.1%, as bullion prices surged on the emergency rate cut by the Fed. GOL/

Heavyweights Newcrest Mining NCM.AX and Northern Star Resources NST.AX ended up 3.7% and 6.8%, respectively.

Mining sector .AXMM ended 0.5% higher, with Rio Tinto (LON:RIO) RIO.AX and Fortescue Metals Group FMG.AX gaining 1.4% and 0.8%.

In New Zealand, the benchmark S&P/NZX 50 index .NZ50 gained 0.6% to finish at 11,417.78.

Gains in utilities and healthcare firms kept the market in positive territory, with energy retailer Mercury NZ MCY.NZ and Fisher & Paykel Healthcare Corp FPH.NZ rising 3.2% and 2.5%, respectively.

Meanwhile, Air New Zealand AIR.NZ announced further capacity cuts through to the end of June, and reported a case of coronavirus on board. The company's shares fell 2.1%.

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