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Australia shares close little changed on grim business activity survey

Published 23/04/2020, 05:50 pm
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* Lynas sees best day in over a year, up 16.9%

* Australian healthcare, financial stocks down

* New Zealand shares settle slightly higher (Updates to close)

By Arpit Nayak

April 23 (Reuters) - Australian shares closed little changed on Thursday as a survey showing grim business activity data overshadowed a surge in exports, while losses in healthcare and financial stocks eclipsed gains in miners.

The S&P/ASX 200 index .AXJO settled 0.1%, or 4.1 points, lower at 5,217.10, after rising 1.2% in early trade on hopes that the U.S. House of Representatives would pass a fresh $484 billion relief package to aid small businesses amid the coronavirus pandemic. shares pared gains after a survey showed the country's overall activity index plunged to a record low of 22.4 in April, compared with 40.7 in March, implying a contraction. Virus-driven lockdowns and social distancing hit the services sector hardest. services PMI was significantly woeful - reality bites - 19.6 and will get worse," said Henry Jennings, senior analyst at Marcustoday.

The dire manufacturing and services survey data took the shine off a 29% spike in goods exports last month as the resource-rich country shipped more iron ore to China and more gold to Hong Kong and the UK. said the banking sector remained an issue as earnings inched closer. "The economic numbers that are more up to date are pointing to a big slowdown and reality is eroding hope," he said.

Heavyweight financials .AXFJ ended 0.5% lower, with the "Big Four" banks all posting losses. Top lender Commonwealth Bank of Australia CBA.AX gave up 0.7%.

Healthcare stocks .AXHJ were the biggest drag on the index, declining 2%. Industry giant CSL CSL.AX accounted for a large chunk of the losses, shedding 2%.

However, an overnight surge in bullion prices and strong recovery in iron ore sent miners .AXMM up 2.7%. The gold index .AXGD climbed 4.3%. IRONORE/ GOL/

BHP BHP.AX , the world's largest miner, climbed 2.7%, while iron ore miner Fortescue Metals Group FMG.AX added 1.1%.

Meanwhile, Lynas Corp LYC.AX , the world's largest rare earths miner outside China, saw its best day in more than a year to finish 16.9% higher, after it won funding to establish a U.S. heavy rare earths facility in Texas. index of energy stocks .AXEJ rallied 2.2% after three straight sessions of losses, as oil prices recovered from over 20-year lows amid signs of a scale-back in production. O/R

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.3%, or 28.44 points, to finish at 10,446.11.

Local shares of lenders Australia and New Zealand Banking Group ANZ.NZ and Westpac Banking Corp WBC.NZ added 1.8% and 0.25%, respectively.

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