Australia: Shares close lower as energy, mining stocks drag

[BENGALURU] Australian shares closed lower on Tuesday (Mar 8), pulled down by energy and mining stocks, as investors grappled with the prospect of a US ban on oil imports from Russia, while New Zealand equities entered correction territory.

Australia's S&P/ASX 200 index closed 0.8 per cent lower at 6,980.30, extending losses to a third session.

Oil prices see-sawed near 14-year highs as the United States considered acting alone to ban Russian oil imports rather than teaming up with its European allies.

Energy stocks slid 3.6 per cent in their worst session in more than a month, after jumping 5.3 per cent in the previous session.

Sector heavyweights Woodside Petroleum and Santos dropped 4.2 per cent and 3.8 per cent, respectively.

"There might be a bit of profit-taking going on," said Brad Smoling, managing director at Smoling Stockbroking.

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"Big resources, commodities and energy stocks are definitely going upward and I don't see that changing."

Viva Energy declined 4.2 per cent as the refiner said it would stop buying Russian crude oil, joining a growing number of companies including Ampol to sever trade ties with the country over its invasion of Ukraine.

Iron ore prices fell for the first time in seven sessions, sending the Australian metals and mining sub-index down 3.6 per cent to its worst session in more than a week.

Rio Tinto, Fortescue Metals Group and BHP Group fell between 3.7 per cent and 4.5 per cent.

Meanwhile, shares of export-focused healthcare companies advanced 1.9 per cent. Imugene and CSL led the gains, rising 4.4 per cent and 2.8 per cent respectively.

Gold stocks added 1.2 per cent after bullion prices rose overnight. Northern Star Resources and Newcrest Mining ended 1.2 per cent and 1.1 per cent higher, respectively.

Financials closed flat, with 2 of the "Big Four" banks up between 0.2 per cent and 1 per cent.

Data on Tuesday showed the country's business conditions rebounded in February as Omicron cases reduced and supply bottlenecks across industries eased.

New Zealand's benchmark S&P/NZX 50 index fell 1.4 per cent to 11,744.95, retreating 10.7 per cent since hitting a record closing high on Jan 5.

Air New Zealand was down 6.5 per cent, while Auckland International Airport dropped 2.9 per cent. REUTERS