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Australian shares battered as pandemic fears mount; NZ down

Published 26/02/2020, 06:40 pm
© Reuters.  Australian shares battered as pandemic fears mount; NZ down

(Updates to close)

Feb 26 (Reuters) - Sell-offs in Australian shares deepened on Wednesday as the rapid spread of coronavirus beyond China sparked fears that the outbreak could turn into a pandemic that could derail the global economy.

The S&P/ASX 200 index .AXJO fell 2.3%, or 158.50 points, to 6,708.10, its lowest close in nearly two months. It has lost 6.3% in the past four sessions.

During the same period, MSCI's World Index .MIWO00000PUS , a market cap-weighted stock market index of 1,644 stocks from companies throughout the world, saw its total value fall by $3 trillion to $42.98 trillion.

Fears of a global pandemic deepened after Asia reported hundreds of new coronavirus cases, the United States warned of an inevitable pandemic, and outbreaks in Italy and Iran spread to other countries. flu-like virus, which is believed to have originated in the Chinese city of Wuhan late last year, has infected about 80,000 people and killed more than 2,700, the vast majority in China.

On Tuesday, a World Health Organization expert said countries need to prepare immediately for an outbreak of the virus so they can respond rapidly when it arrives. Australia, selling was broad-based, with 185 of the 200 stocks on the benchmark index closing in the red.

Financial stocks .AXFJ were the biggest drag, down 2%, with the "Big Four" banks declining between 1.7% and 2.1%.

AMP Ltd AMP.AX tumbled 4.7% to close at its lowest level since Feb. 14.

Energy stocks .AXEJ dropped 2.4% to their lowest close since August 2019, with Woodside Petroleum WPL.AX shedding 3% to close at its lowest in nearly two years.

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The company adjusted its stakes with BHP Group BHP.AX for two of its permits in the Scarborough project. Australia VAH.AX slipped 4.2% to a record low after the company flagged a capacity cut and warned that its bottom line would take a hit as the coronavirus outbreak erodes demand. Woolworths Group Ltd WOW.AX , the country's largest supermarket chain, posted a jump in first-half profit but warned of softer trading ahead as drought and months of bushfires hurt the quality of its produce. Zealand's benchmark S&P/NZX 50 index .NZ50 slipped 1.6%, or 185.37 points, to finish the session at 11,533.86.

Sky Network Television SKT.NZ slumped 6.7%, while Port Tauranga POT.NZ shed 5.5%.

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