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Australian shares edge lower as BHP drags; NZ down

Published 10/01/2019, 12:28 pm
Updated 10/01/2019, 12:30 pm
© Reuters.  Australian shares edge lower as BHP drags; NZ down

* Investors await details on U.S.-China trade talks

* BHP Group drags benchmark, shares trade ex-dividend

* Energy index jumps on strength in oil prices

By Shriya Ramakrishnan

Jan 10 (Reuters) - Australian shares edged lower on Thursday, as investors awaited further details on U.S.-China trade talks, while a slump in the world's biggest miner BHP's shares kept the benchmark in check.

The S&P/ASX 200 index .AXJO fell 0.1 percent, or 5.8 points, to 5,772.5 by 0100 GMT. The benchmark gained nearly 1 percent on Wednesday.

Delegations from the United States and China ended talks on Wednesday that lasted longer than expected, with negotiations focused on Beijing's pledge to buy a "substantial" amount of U.S. farm and energy commodities as well as increased access to China's markets. meetings this week which are the first ever face-to-face talks since U.S. President Donald Trump and his Chinese counterpart Xi Jinping agreed to a 90-day truce have rejuvenated risk appetite, easing fears of an all-out trade war and its possible impact on global growth.

"The problem for the current trade situation is that detail is very important," said Michael McCarthy, Chief Market Strategist at CMC Markets.

"While markets took it as good news that trade talks extended for a third day, the reality is that most people are aware that a substantial agreement is going to take a lot of time," he added.

Australian markets are highly sensitive to developments in China, a major buyer of the country's commodities and resources.

Energy stocks .AXEJ led gains on the benchmark, advancing as much as 1.6 percent to their highest since Nov. 19, 2018.

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The sector was poised for sixth straight session of gains, as oil prices had rallied on hopes of a possible thaw in the Sino-U.S. trade spat, while OPEC-led crude output cuts also provided support. O/R

Sector heavyweight Woodside Petroleum WPL.AX strengthened as much as 1.7 percent to a more than one-and-a-half month high, while Santos Ltd STO.AX climbed 1.1 percent.

Newcrest Mining Ltd NCM.AX jumped as much as 1.1 percent to a more than one-year high, while St Barbara Ltd SBM.AX rose 0.9 percent.

However, Australia's biggest-listed firm BHP Group BHP.AX , which traded ex-dividend, fell 4.3 percent, its biggest intraday percent loss in nearly 11 months, dragging the benchmark.

Meanwhile, gold stocks .AXGD gained 1.1 percent with a weaker U.S. dollar making the precious metal more attractive. GOL/ .

Elsewhere, shares of horticulture firm Costa Group Holdings Ltd CGC.AX plunged nearly 35 percent to an over 19-month low and was the worst performer after it cut its previously provided outlook for the half year. the Tasman sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.2 percent, or 19.99 points, to 8,927.23.

Industrial and healthcare stocks led losses, with Auckland International Airport AIA.NZ falling 0.6 percent, while Genesis Energy GNE.NZ slipped as much as 1.9 percent.

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