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Australia shares slide 3% after U.S. data reaffirms virus pain

Published 01/05/2020, 11:07 am
Updated 01/05/2020, 11:12 am
© Reuters.
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* All sub-indexes on Australia index lower

* Austal biggest loses on ASX

* New Zealand flat, SkyCity down 5.3%

By Shashwat Awasthi

May 1 (Reuters) - Australian shares fell 3% on Friday, tracking a broad sell-off on Wall Street overnight as dismal economic data from the United States again highlighted the economic pain from the coronavirus pandemic.

The S&P/ASX 200 index .AXJO fell 2.97% to 5,358.6 by 0030 GMT. The index was off 25.5% from its lifetime high hit on Feb. 20 and down 17.4% for the year.

Millions more Americans filed claims for unemployment benefits last week, suggesting that layoffs were spreading to industries that were not initially directly impacted by business closures and disruptions, while consumer spending slumped in March. also locked in profits from recent gains that saw the Australian benchmark index record its first monthly rise in three in April. The bourse has rallied over 20% since March 23, when it slumped to a more than seven-year low.

Overnight, the U.S. Dow Jones Industrial Average .DJI fell 1.2%, the S&P 500 .SPX lost 0.9% and Nasdaq .IXIC gave up 0.3%. .N

All major sub-indexes on the Australian benchmark traded in the red, with financial stocks .AXFJ , miners .AXMM , gold stocks .AXGD and energy firms .AXEJ shedding between 3.5% and 4.6%.

Shipbuilder Austal ASB.AX was the biggest loser among Australian stocks as it plunged 23% after the U.S. Navy snubbed the company on a contract worth more than $5.5 billion to build its newest class of warships. number of issues on the ASX that advanced were 264 while 822 declined as a 0.3-to-1 ratio favoured decliners. There were 82 new highs and 77 new lows.

In New Zealand, the main S&P/NZX 50 index .NZ50 was roughly flat at 10,535.8.

But shares of SkyCity Entertainment SKC.NZ skidded 5.3% after the company warned of a further delay to a key construction project in Auckland.

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