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Australia shares end lower as recession fears deepen, energy stocks drag

Published 15/04/2020, 05:25 pm
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* Energy stocks mark worst day in nearly three weeks

* Survey shows consumer sentiment at a three-decade low

* Lynas climbs 5.2% as quarterly output jumps

* NZ sees best day in almost 3 weeks ahead of fiscal stimulus (Updates to close)

By Arpit Nayak

April 15 (Reuters) - A drop in energy stocks saw Australian shares finish lower on Wednesday, while a collapse in consumer sentiment reinforced fears of an economic fallout from the coronavirus crisis.

The S&P/ASX 200 index .AXJO ended 0.4% lower at 5,466.70, after starting the session in positive territory. The benchmark closed 1.9% firmer on Tuesday.

A survey showed Australian consumer sentiment had crumbled in April to a 30-year low as virus-induced social distancing measures threatened to push the country's economy into its first recession in three decades. The market opened with glimmers of hope but this was quickly erased ... after the consumer confidence numbers were the worst in the 47-year history of the survey," RBC Capital Markets' head of equities Karen Jorritsma said in a note.

"...this is another level on the confidence shake-out."

The survey comes ahead of what is expected to be bleak unemployment data on Thursday, as listed companies in Australia and New Zealand slash jobs. Analysts expect the rate to shoot above 10% in the next few months. to the gloom in markets, the International Monetary Fund warned the global economy would this year suffer its steepest downturn since the Great Depression of the 1930s. prices recovered slightly in Asian trading hours but were not enough to erase overnight heavy losses as fears of oversupply and a deep recession weighed. O/R

The slump in oil prices saw the energy index .AXEJ dropping 3.1% in their worst day in nearly three weeks.

Woodside Petroleum WPL.AX and Santos STO.AX fell over 3.5% each.

Miners .AXMM also clocked in losses, dipping 0.6% as giants BHP Group BHP.AX and Rio Tinto (LON:RIO) RIO.AX fell 0.7% and 1.2%, respectively.

However, Lynas Corp LYC.AX climbed 5.2% after the world's largest rare earths producer outside China applied for an exemption for its Malaysian processing plant, while reporting higher output in the third quarter. the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 closed up 2.5% or 250.92 points at 10,409.94, as the government prepares to announce further fiscal stimulus this week.

Financials provided the biggest boost, with New Zealand-listed shares of lenders Westpac Banking Corp WBC.NZ and Australia and New Zealand Banking Group ANZ.NZ clocking gains of 1.7% and 2%, respectively.

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