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Australia shares snap 6 days of gains on trade war fears; NZ at new peak

Published 23/05/2019, 05:02 pm
© Reuters.  Australia shares snap 6 days of gains on trade war fears; NZ at new peak
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* Rising U.S.-China trade tensions hit outlook for commodities

* Financials, miners and energy stocks lose most

* Aussie benchmark snaps six-session winning streak (Updates to close)

May 23 (Reuters) - Australian shares ended lower on Thursday, ending six straight sessions of gains, as global stocks slipped on concerns U.S-China trade frictions were spilling into the technology sector.

The S&P/ASX 200 index .AXJO fell 0.3% or 18.90 points to 6,491.80. The benchmark rose 0.2% on Wednesday.

"As ever, the sentiment is vulnerable to headline flashes on trade," said Jeffrey Halley, senior market analyst, Asia Pacific at OANDA, said in a note.

"We can expect this sort of flip-flopping in sentiment daily until more clarity emerges on any progress on the U.S.-China trade front," Halley added.

On Wednesday, Reuters reported the U.S. administration was considering sanctions on Chinese video surveillance firm Hikvision 002415.SZ , which sparked fresh worries that the trade conflict was spiralling into a technology cold war.

After recent curbs against Chinese telecoms giant Huawei Technologies HWT.UL , investors worried trade talks between the world's two largest economies would be at a stalemate.

Miners .AXMM slumped 1%, shrugging off record high iron ore prices. Mining giants BHP Group BHP.AX and rival Rio Tinto (LON:RIO) RIO.AX fell 2% and 0.7%, respectively.

However, Fortescue Metals Group FMG.AX managed to eke out gains of 1%, recovering after a steep drop in the last session as shares traded ex-dividend.

Financials .AXFJ tumbled 1%, with all the "Big Four" lenders trading in negative territory. Westpac Banking Corp WBC.AX fell 2.3%, while Australia and New Zealand Banking Group ANZ.AX lost 1.6%.

Top lender Commonwealth Bank of Australia CBA.AX fell the least among them, down 1.1%.

Energy stocks .AXEJ ended down 1.3% as the outlook on demand weakened. Santos STO.AX shed 2% while sector heavyweight Woodside Petroleum WPL.AX lost 1.1%.

Bucking the trend, property and housing-related stocks continued to benefit after Australia's prudential regulator proposed easing of certain lending criteria for home loans earlier this week.

Construction materials supplier Adelaide Brighton ABC.AX rose 6.3% while CSR Ltd CSR.AX added 5.7%. Boral BLD.AX gained 1.2%.

New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.3% or 25.93 points to 10,263.41, a new all-time high.

Dairy firm a2 Milk Company ATM.NZ edged slightly higher while Fletcher Building FBU.NZ added 3%.

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