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Australia shares close at near 11-month low on virus impact fears; NZ falls

Published 06/03/2020, 05:19 pm
Updated 06/03/2020, 05:21 pm
© Reuters.  Australia shares close at near 11-month low on virus impact fears; NZ falls
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* Benchmark loses 3.5% over the week

* Top lender CBA marks worst weekly fall in over 11 years

* Energy sub-index falls for 8th consecutive week

* Gold stocks see best week in nearly eight months (Updates to close)

By Sameer Manekar

March 6 (Reuters) - Australian shares closed at a near 11-month low on Friday, tracking declines on Wall Street and across broader Asian peers as fears of a global economic fallout due to the rapid spread of the coronavirus epidemic continued.

The S&P/ASX 200 index .AXJO fell 2.8% to finish at 6,216.20, its lowest close since April 11, 2019. The index also marked its second straight weekly loss, falling 3.5% over the week.

Among broader Asian peers, the MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 2.1%, while overnight, all the three major U.S. indexes declined up to 3.6%. MKTS/GLOB .N

The escalating virus epidemic has stoked concerns of global economic impact, with the S&P Global Ratings forecasting Australian growth to slow sharply to 1.2% in 2020. The agency also expects the epidemic to knock $211 billion off the combined economies of Asia-Pacific. more people died from the virus in France, taking the total to seven, while Britain logged its first death from the pathogen. Australia recorded its second death on Thursday, with 60 cases reported so far. most-disrupted sectors employ a large share of workers which will weaken both the labor market and consumer confidence," Shaun Roache, Asia-Pacific chief economist at S&P Global Ratings said.

The heavyweight financials sub-index .AXFJ incurred heavy losses, ending 4.2% lower in its worst session since June 2016. The sub-index recorded its second straight weekly loss, declining 8.6%.

All the Big Four lenders ended in the red, with top two banks, Commonwealth Bank of Australia CBA.AX and Westpac Banking Corp WBC.AX losing 3.7% and 4%, respectively.

CBA shares declined for a 10th straight session, and clocked their worst weekly fall in over 11 years.

The mining sector .AXMM ended 2.4% lower, with global miners BHP Group BHP.AX and Rio Tinto (LON:RIO) RIO.AX shedding 3.7% and 2.5%, respectively.

Energy shares .AXEJ ended at their lowest close since August 2017, and recorded their eighth straight weekly loss.

Blue-chip firms Woodside Petroleum WPL.AX and Santos Ltd STO.AX fell 3.4% and 2.6%.

Tracking overnight losses on Wall Street, the local technology sub-index .AXIJ slipped 4.2%. The sub-index fell 3.7% over the week, its fourth weekly loss. stocks .AXGD posted their biggest weekly gain in nearly eight months as bullion prices were on track for their best weekly gain since 2016. GOL/ Newcrest Mining NCM.AX and Northern Star Resources NST.AX advanced 1.9% and 2.9%.

In New Zealand, the benchmark S&P/NZX 50 index .NZ50 slipped 1.9% to finish at 11,425.90.

NZ-listed Westpac Banking Corp WBC.NZ and electricity generator Meridian Energy MEL.NZ declined 4.2% and 4.7%, respectively.

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