🚀 ProPicks AI Hits +34.9% Return!Read Now

Australia shares end lower, miners sag on China trade slump

Published 14/01/2019, 05:01 pm
© Reuters.  Australia shares end lower, miners sag on China trade slump
AXJO
-
BHP
-
BSL
-
RIO
-
RIO
-
WBC
-
WES
-
WOR
-
HG
-
LCO
-
CL
-
WHC
-
AXMM
-
AXEJ
-
AXFJ
-
NZ50
-
PKF1
-

* Lower metal prices hit mining stocks

* Financials top gainers

* NZ benchmark finishes 0.1 pct higher (Updates to close)

Jan 14 (Reuters) - Australian shares ended slightly lower on Monday, as mining and energy stocks declined after the country's top trading partner China reported a shock contraction in imports and exports.

The S&P/ASX 200 index .AXJO finished 0.02 percent lower at 5,773.40, its second consecutive session of losses, after earlier trading in positive territory.

China's exports unexpectedly fell 4.4 percent in December from a year earlier, the biggest monthly drop in two years, while imports too contracted, falling 7.6 percent to decline the most since July 2016. headwinds in the world's second-largest economy tend to have a particularly negative effect on Australia's metals and mining sectors.

The ASX Metals and Mining index .AXMM ended 0.3 percent lower as copper and aluminium prices on both the London and Shanghai exchanges dropped after China's disappointing trade figures. manufacturer Bluescope Steel Ltd BSL.AX was the top percentage loser in the metals index, closing 5.2 percent lower, while mining behemoths BHP Group BHP.AX and Rio Tinto (LON:RIO) RIO.AX finished the session down 0.2 percent and 0.3 percent, respectively.

The ASX Energy index .AXEJ was also hit by lower oil prices and shed 0.8 percent.

Oil prices fell by almost 1 percent, with Brent crude slipping below $60 per barrel, after weak data in the second-largest crude oil consumer hurt sentiment. O/R

Coal miner Whitehaven Coal Ltd WHC.AX lost 3.6 percent while energy services firm Worleyparsons Ltd WOR.AX shed more than 2 percent at the close.

Shares of conglomerate Wesfarmers WES.AX lost 2.2 percent after it flagged a decline in earnings at its department store unit, hurt by a slowdown in sales at Kmart. which was among the top drags on the benchmark, also said it was likely to record a gain of at least A$3 billion ($2.16 billion) from a spree of disposals that includes a spinoff of the country's second-biggest grocery chain, Coles Group.

Meanwhile, the financial sector .AXFJ , which consists of some of the world's most profitable banks, climbed 0.4 percent and was the top boost to the benchmark.

Westpac Banking Corp WBC.AX gained 0.5 percent even as a senior executive of the No.2 lender said Australia's big banks may struggle to raise the amount of extra capital they require under new rules proposed by the banking regulator. rest of the country's "Big Four" firmed between 0.4 percent and 0.5 percent.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 closed 0.1 percent, or 8.97 points, higher to finish the session at 8,968.55.

Freight operator Port of Tauranga Ltd POT.NZ was the top percentage gainer, putting on 1.8 percent at Monday's close.

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.