🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

Australia shares slide as China growth concerns weigh; NZ drops

Published 09/10/2018, 12:14 pm
Updated 09/10/2018, 12:20 pm
© Reuters.  Australia shares slide as China growth concerns weigh; NZ drops
AUD/USD
-
AXJO
-
BHP
-
CSL
-
MQG
-
CBA
-
COH
-
NAB
-
AXMM
-
AXHJ
-
AXFJ
-
NZ50
-
ATM
-

* China growth concerns push Aussie shares lower

* Healthcare stocks fall the most

* NZ falls on a2 Milk

By Aditya Soni

Oct 9 (Reuters) - Australian shares fell to a near four-month low on Tuesday as fears of slowing economic growth in the country's largest trading partner China dented investor sentiment.

Broad-based losses pushed the S&P/ASX 200 index .AXJO 0.9 percent or 56.40 points lower to 6,043.90 by 0100 GMT.

That came on top of a sharp 1.4 percent loss on Monday, when equity markets around the world slipped amid concerns over the fallout from the escalating U.S.-Sino trade war. MKTS/GLOB

China is Australia's largest trading partner and any changes in the economic fortunes there tends to dictate domestic market movements. Concerns about the economic hit from the trade war prompted China's central bank over the weekend to step up liquidity support. and China are setting up the scene for a prolonged trade war as China moves to take some pressure off the consumers through lending restrictions," said Mathan Somasundaram, a market portfolio strategist at Blue Ocean Equities in Sydney.

Healthcare stocks .AXHJ led the losses as they fell 2.9 percent to their lowest since June 19.

Index Heavyweight CSL CSL.AX , whose second biggest market is China, declined 2.9 percent to a more than 3-1/2 month low, while Cochlear Ltd COH.AX saw its worst day in two-months as it fell as much 7.1 percent.

Banks also added to the bearish sentiment, with the financial index .AXFJ down 0.3 percent.

Commonwealth Bank of Australia CBA.AX fell 0.5 percent to its lowest since June 15.

Earlier in the day, the country's top lender said it will refund fees taken out of dead client accounts and unwind a controversial system of charging customers commissions on financial products. changes, sparked by damaging revelations from a powerful inquiry into financial sector misconduct, come during a time of upheaval for Australia's biggest financial institutions which are facing unprecedented scrutiny from the public, courts and lawmakers.

The other big players in the banking sector, National Australia Bank Ltd NAB.AX and Macquarie Group Ltd MQG.AX gave up 0.3 percent and 0.6 percent, respectively.

Materials stocks, especially miners who export a majority of their mined ore to China, were also in red.

The metals and mining index .AXMM fell 0.6 percent, with global miner BHP BHP.AX dipping 0.4 percent.

Across the Tasman sea, New Zealand's shares saw their worst day in nearly five-weeks. The benchmark S&P/NZX 50 index .NZ50 fell as much as 0.9 percent before trimming the losses to trade down 0.1 percent or 10.98 points to 9,136.120.

Consumer staples were among the top drags. Dairy firm a2 Milk Company Ltd ATM.NZ , which makes a majority of its income in China, fell 3.3 percent to its lowest since August 2.

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.