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Australia shares slump as Trump-Biden debate stokes caution

Published 30/09/2020, 04:55 pm
© Reuters.
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* Benchmark loses 1.4% during the quarter

* Miners and financials drag the index lower

* NZ bourse rises 2.6% during the quarter (Updates to close)

By Sameer Manekar

Sept 30 (Reuters) - Australian shares fell more than 2% on Wednesday, with miners and financials suffering major blows, as investors tracked Wall Street futures lower after the first U.S. presidential debate stoked caution and uncertainty ahead of the election.

The S&P/ASX 200 index .AXJO ended 2.3% lower at 5,815.9, posting their third straight session in the red. The benchmark snapped a five-month winning streak, and lost 1.4% during the quarter.

U.S. President Donald Trump and Democratic rival Joe Biden debated on Wednesday as markets pulled back from early gains, with the U.S. stock futures retreating after Trump cast doubt on whether he would accept the election's outcome. MKTS/GLOB

S&P 500 futures ESc1 were down 0.6%, with Dow Jones YMc1 and Nasdaq 100 NQc1 futures each losing as much as 1% after the debate.

"The U.S. elections, and today's debate, is adding an extra level to an already uncertain market," said Brad Smoling, managing director at Smoling Stockbrocking.

"No matter what the outcome of the elections, it will be contentious, and it will add more uncertainty to the equities," Smoling added.

Back home, Australian heavyweight mining stocks .AXMM , which are reliant on exports to China, were the biggest losers after shedding 2.3% in their third consecutive session of losses.

Global iron ore mining giants BHP Group BHP.AX and Rio Tinto (LON:RIO) RIO.AX ended 2.9% and 1.3% lower, respectively.

Investors appeared to have shrugged off a positive data from China that showed factory activity extended growth in September, suggesting a recovery in the world's second largest economy. index .AXFJ ended 2.2% lower, with the so-called "Big Four" banks posting major declines. two lenders Commonwealth Bank of Australia CBA.AX and Westpac Banking Corp WBC.AX fell up to 1.6% each.

In New Zealand, the benchmark S&P/NZX 50 index .NZ50 ended flat at 11,747.28, recovering from an earlier drop of 0.6%.

The index lost 1.6% in September, ending its five-month winning streak, but finished the quarter 2.6% higher.

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