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CORRECTED-Australia shares end lower as markets await clues on trade talks; NZ dips (Nov 18)

Published 20/11/2019, 12:40 pm
Updated 20/11/2019, 12:40 pm
© Reuters.  CORRECTED-Australia shares end lower as markets await clues on trade talks; NZ dips (Nov 18)

(Corrects paragraph 9 to make clear Saracen Mineral Holdings shares were on trading halt, not closed at one-week low)

* Cautious optimism over the Sino-U.S. trade-deal uncertainty

* Gold stocks suffer as bullion prices drop

* Minutes of Australia cenbank rate decision in focus

By Nikhil Subba

Nov 18 (Reuters) - Australian shares closed weaker on Monday, with gold and healthcare sectors leading losses, as investors maintained a cautious stance amid a lack of concrete detail in the Sino-U.S. trade negotiations.

The S&P/ASX 200 index .AXJO inched 0.4% lower to 6,766.80 at the close of trade. The benchmark closed 0.9% firmer on Friday.

"Despite the White House and Beijing engaging in constructive talks, what is patently clear is a lack of conviction about both sides arriving at a mutually agreeable resolution," analysts at Mizuho Bank said in a note to clients.

Doubts about the trade talks emerged early last week, although optimism gradually returned as U.S. officials sounded more positive. Neither side, however, provided concrete details about headway in their trade talks.

White House economic adviser Larry Kudlow said on Thursday that the United States and China were close to a trade agreement, citing what he called as very "constructive" talks with Beijing, which helped lift global equities on Friday. long on hope and short on conviction is risk associated with these markets," the Mizuho note said.

The Australian market is also awaiting minutes from the central bank, due on Tuesday, for any signs of a pause to its rate reduction. The central bank decided to keep its policy interest rate unchanged in November, but has indicated it is open to further easing. by a decline in bullion prices, gold-related stocks .AXGD ended the day 1.6% lower, with OceanaGold Corp OGC.AX hitting its lowest close in more than four months.

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Shares of Saracen Mineral Holdings Ltd SAR.AX were on a trading halt after it offered to buy Canadian-listed Barrick Gold Corp's ABX.TO 50% stake in the Super Pit gold mine in Western Australia for $750 million. healthcare stocks .AXHJ retreated after two sessions of strong gains to close about 1% weaker, dragged lower by losses in index heavyweight CSL Ltd CSL.AX .

Financial stocks .AXFJ shed previous session's gains, with the 'Big Four' lenders ending in negative territory.

National Australia Bank NAB.AX , the country's third-largest lender, is looking to raise A$1.4 billion ($959.70 million) through the issue of medium-term notes. stocks .AXIJ inched lower, with Afterpay Touch Group APT.AX declining about 2% to a nearly five-week closing low, and tech behemoth WiseTech Global WTC.AX giving up about 1% at close.

New Zealand's benchmark S&P/NZX 50 index .NZ50 dipped 0.2% to finish the session at 10,873.16, pressured by utilities and financials.

Telecommunications company Sky Network TV SKT.NZ tumbled 6.3%, while electricity retailer Mercury NZ MCY.NZ lost 3%, as both stocks closed at their lowest in nearly two weeks.

($1 = 1.4588 Australian dollars)

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