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Australia shares end lower as corporate earnings, COVID-19 cases loom

Published 05/08/2020, 04:40 pm
Updated 05/08/2020, 04:42 pm

* CBA, Woodside Petroleum due to report earnings next week

* Bullion prices help gold stocks surge

* Victoria reports record rise in COVID-19 cases and deaths (Updates to close)

By Soumyajit Saha

Aug 5 (Reuters) - Australian shares closed lower on Wednesday as investors stayed away from risky bets ahead of the corporate earnings season, while a spike in domestic COVID-19 cases continued to bruise risk sentiment.

The S&P/ASX 200 index .AXJO was down 0.6% at 6,001.3 points at the close of trade.

Crucial earnings filings by top lenders such as Commonwealth Bank CBA.AX and National Australia Bank NAB.AX , and energy giants AGL Energy AGL.AX and Woodside Petroleum WPL.AX , are slated to come in starting this week.

"We've been through a 'confession season' with more than half of the top companies having pushed guidance down or withdrawn it altogether ... as a result we are going in blind into this earnings season," said Michael McCarthy, chief market strategist at CMC Markets.

"The (virus-related) numbers from Victoria today were quite high again, another reason to be cautious."

Victoria, the country's second-most populous state, reported a record rise in fresh COVID-19 cases and deaths on Wednesday, even as it prepared to close much of its economy to control a second wave of infection. to the market's uncertainty, leading economies United States and China said they would review the implementation of their Phase 1 trade deal in a video-conference on Aug. 15. tension in that (Sino-U.S.) relationship has been growing for the past few weeks, and with the two largest economies at loggerheads the rest of the world is unlikely to go well," McCarthy added.

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Financials .AXFJ dropped 0.8%, with three of the 'Big Four' banks falling in the range of 0.3% to 1.3%.

The sub-index for healthcare stocks .AXHJ receded more than a percent, with heavyweight CSL Ltd CSL.AX losing 1.8%.

Industrial stocks .AXIJ were down 1.5%, dragged by losses among the likes of Transurban Group TCL.AX and Sydney Airport Holdings SYD.AX , down 1.4% and 2.3%.

Bucking the tepid trend, gold stocks .AXGD surged about 3%, as prices of the underlying yellow metal scaled an all-time peak, helped by bets for more stimulus measures against the pandemic-ravaged global economy. GOL/

The country's largest independent gold miner Newcrest Mining Ltd NCM.AX jumped 2.9%.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 ended 0.1% lower at 11,757.7 points, hurt by financial and healthcare stocks.

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