Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Australia shares drop as ties with China come under pressure

Published 20/05/2020, 11:36 am
Updated 20/05/2020, 11:42 am
© Reuters.

* China, Australia in spat over barley tariffs

* Doubts cast over Moderna 's vaccine trial results

* Top official says NZ central bank may expand QE

By Arpit Nayak

May 20 (Reuters) - Australian shares fell on Wednesday, weighed down by escalating tensions with its top trading partner China over a global probe into the origin of the novel coronavirus, while Wall Street's overnight losses also dented sentiment.

The S&P/ASX 200 index .AXJO lost 0.6% to 5,526.7 by 0054 GMT. It had closed at a two-month peak on Tuesday.

Australia and China engaged in a war of words after Beijing imposed heavy tariffs on Australian barley imports - a move expected to effectively halt a trade worth billions of dollars. along with the European Union, has spearheaded the call for an inquiry into the origins of the new coronavirus, which first appeared in China. U.S. indexes were dragged lower by a report questioning the validity of Moderna Inc's MRNA.O early trial results for a possible coronavirus vaccine. .N

Back home, global miners BHP Group BHP.AX and Rio Tinto (LON:RIO) RIO.AX led declines in the heavyweight mining sector .AXMM which fell as much as 1.5%.

Among financials .AXFJ , lenders Commonwealth Bank of Australia CBA.AX and National Australia Bank NAB.AX led declines. The sub-index shed 1.3%.

Energy stocks .AXEJ also slid up to 2.2%, with Woodside Petroleum WPL.AX and Santos STO.AX easing 2.3% and 2.6%, respectively.

Top gold miner Newcrest Mining NCM.AX was the biggest drag among gold stocks .AXGD despite reporting it had sufficient water supply at its Cadia mine for at least two years. shares of medical equipment firm Resmed RMD.AX dropped 2.7% and were the biggest drag on a sub-index of healthcare stocks .AXHJ .

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

In New Zealand, the benchmark S&P/NZX 50 index .NZ50 eased 0.6% to 10,728.55.

Deputy Governor of the central bank Geoff Bascand said in an interview with Reuters the government's bond buying programme could be expanded further if needed. Building FBU.NZ , the country's largest construction firm, recouped early losses to rise 0.3% after signalling a sharp downturn in 2021 due to the virus and laying off about 10% of its workforce.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.