Australia shares finish lower as mining, energy stocks fall
Reuters
Published Oct 16, 2020 17:02
* ASX benchmark gains 1.3% on a weekly basis
* Energy stocks slip on falling oil prices
* NZ down ahead of election results on Saturday (Updates to close)
By Nikhil Subba
Oct 16 (Reuters) - Australian shares edged lower on Friday, dragged down by mining stocks after Rio Tinto (LON:RIO) raised concerns about steel production outside China, with sentiment taking a hit from a resurgence in coronavirus cases in Europe.
The S&P/ASX 200 index .AXJO closed 0.5% lower at 6,176.80, having risen 0.5% on Thursday. The benchmark rose 1.2% this week, recording its second straight weekly gain.
Shares of Rio Tinto RIO.AX fell 0.9% after the world's biggest iron ore miner said steel production outside of China remains significantly down year on year while rising coronavirus cases were putting global economic growth at risk. broader mining sector .AXMM lost 0.6%, while benchmark heavyweight BHP Group Ltd BHP.AX ended 1.4% lower.
Asian shares also declined as U.S. stimulus talks stalled and rising coronavirus cases in Europe forced some countries there to revive curfews and lockdowns. continue to see the big lift in COVID-19 cases, particularly across Europe, and now new restrictions coming through a number of European countries ... is another concern," said James Tao, market analyst at CommSec.
"Plenty of risk, plenty of volatility at the moment, so investors are taking any chance to take a bit of profit."
The Australian energy sector .AXEJ fell 1%, tracking lower oil prices. Sector heavyweight Santos STO.AX fell 2%, while Oil Search OSH.AX tumbled 3%.
Healthcare stocks .AXHJ declined 0.7%, dragged lower by CSL CSL.AX which slid 0.7%.
New Zealand's benchmark S&P/NZX 50 index .NZ50 closed 0.4% lower at 12,433.16, ahead of election results on Saturday.
An opinion poll showed current Prime Minister Jacinda Ardern from the Labour Party is widely expected to beat her main rival, National Party leader Judith Collins, on the back of her success in tackling the coronavirus. top losers were Contact Energy Ltd CEN.NZ , down 4.4%, and Meridian Energy Ltd MEL.NZ , losing 4.2%.
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Written By: Reuters
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