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Australian, NZ shares join the global rout; gold stocks glitter

Published 11/10/2018, 05:03 pm
Updated 11/10/2018, 05:10 pm
© Reuters.  Australian, NZ shares join the global rout; gold stocks glitter

* All Australia sector indexes close in red

* Gold stocks go against the trend

* a2 Milk Co top percentage loser in NZ

Oct 11 (Reuters) - Australian shares joined the global sell-off, closing at a near six-month low on Thursday, as the Wall Street rout overnight battered equity markets elsewhere.

The benchmark S&P/ASX 200 index .AXJO closed 2.74 percent, or 166 points, down at 5,883.80 with all major sector indexes in the red.

The high-profile financials and materials indexes pulled the benchmark down heavily, with the former feeling an additional pinch with two major banks facing parliamentary grilling on financial misconduct.

U.S. stocks tumbled on Wednesday as investors dumped high-growth names such as technology firms, with rising Treasury yields and trade-related worries sapping risk appetites. mayhem on Wall Street battered sentiment further in an Australian market already hit by Sino-U.S. trade tensions as well as an IMF forecast of a global economic slowdown. The benchmark has fallen more than 5 percent this month.

The financial index .AXFJ , reeling under a powerful quasi-judicial inquiry into wrongdoings in the sector, closed down 2.9 percent with all but one of its constituents off.

Commonwealth Bank of Australia CBA.AX , the biggest lender, and Westpac Banking Corp WBC.AX , whose executives appeared before a parliament enquiry during the day, dropped 2.9 percent and 2.6 percent, respectively.

In his first public questioning since the launch of the inquiry, CBA chief executive Matt Comyn said that a money-laundering scandal was the greatest disappointment of his career. Metals and Mining index .AXMM also melted, ending 2.8 percent down though some of the losses were offset by gains in gold stocks, a historic safe haven in panic scenarios.

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The top five percentage gainers on the Australian benchmark index were gold stocks, led by Evolution Mining Ltd EVM.AX and St. Barbara Ltd SBM.AX , which both finished up 6.3 percent.

Gloomy sentiment prevailed in New Zealand as well, as the benchmark S&P/NZX 50 index .NZ50 saw its steepest single-session fall in about a decade. The benchmark index finished 3.6 percent, or 329.62 points, down at 8,721.20.

Dairy company a2 Milk Co Ltd ATM.NZ was the top percentage decliner on the benchmark, plunging 11.5 percent to an eight-month low.

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