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REFILE-Ex-dividend trading, global selling trip Australia shares

Published 04/03/2021, 05:19 pm
Updated 04/03/2021, 05:36 pm
© Reuters.
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(Corrects additional reporting credit, adds editing credit)

* Tech, healthcare stocks track U.S. peers lower

* Rio Tinto (LON:RIO), BHP, Woolworths trade ex-dividend

* NZ's Synlait Milk dives after withdrawing forecast

By Shruti Sonal

March 4 (Reuters) - Australian shares fell on Thursday as renewed worries about rising U.S. bond yields soured risk sentiment globally and a slew of local index heavyweights including Rio Tinto traded ex-dividend.

Overnight, major Wall Street indexes closed sharply lower after investors sold high-flying technology stocks, while MSCI's ex-Japan Asian-Pacific shares .MIAPJ0000PUS lost 1.7% in early trade on Thursday. .N MKTS/GLOB

"The situation in the local market right now is related to the U.S. treasury market," said Brad Smoling, managing director at Smoling Stockbroking.

"This seems to be a big concern and the Fed has to step in to do some yield curve control."

The S&P/ASX 200 index .AXJO ended 0.8% lower at 6,760.7, weighed down by miners Rio Tinto RIO.AX and BHP Group BHP.AX and supermarket chain Woolworths Group WOW.AX as they traded ex-dividend.

Tech stocks .AXIJ fell 1.5%, tracking a sell-off in U.S. peers. Buy-now-pay-later firm Afterpay APT.AX slid more than 2%, while Xero Ltd XRO.AX shed 3%.

Healthcare stocks .AXHJ fell 3.5%, hitting their lowest level in nearly a year. Sector heavyweight CSL Ltd CSL.AX , which relies heavily on revenues from the United States, dropped as much as 5.8%.

Bucking broader market weakness, the financial sub-index .AXFJ climbed more than 1% to its highest in over a year. The "Big Four" banks firmed between 0.4% and 2%, while QBE Insurance QBE.AX gained 3%.

Financials have added about 5% this week, buoyed by data showing faster-than-expected economic growth, reaffirmation by the central bank of its accommodative stance and extension of a bond-buying programme.

New Zealand's benchmark S&P/NZX 50 index .NZ50 closed down 1%, with utility, consumer and healthcare stocks weighing the most.

Dairy firm Synlait Milk Ltd SML.NZ dived more than 10% to hit a near four-year low, after withdrawing its 2021 earnings forecast.

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