Australia shares closes at over 5-month low; NZ down

[BENGALURU] Australian shares fell on Thursday, hitting their lowest close in more than five months, with material stocks leading the losses as a slide in iron ore prices hurt sentiment.

The S&P/ASX 200 index fell 0.5 per cent, or 30.1 points, to 5,759.4, having declined 0.7 per cent on Wednesday. The benchmark has posted a decline of 4.3 per cent for the month, its biggest since January 2016 and its third straight monthly loss.

Australian and New Zealand markets are closed on Friday and Monday for public holidays.

A fall in iron ore prices led to weakness in material stocks, especially miners, with the Australian metals and mining index declining 1.2 per cent to its lowest in more than three months.

Global miner BHP slipped 1.6 per cent, while its rival Rio Tinto Ltd slid 0.9 per cent, both closing at their lowest in three months.

Consumer staples were also under pressure, with Australian-listed shares of dairy firm a2 Milk Company Ltd leading the losses, touching a five-week closing low, down nearly 5 per cent.

Nestle, the world's biggest packaged food maker, launched a brand of infant formula that uses the protein made popular by a2 Milk Company, The New Zealand Herald reported. The New Zealand Herald added that Nestle's product is available in China, raising concerns the Swiss group's version could eat into a2 Milk Company's market share there.

Across the Tasman sea, New Zealand's benchmark S&P/NZX 50 index fell 0.8 per cent, or 69.01 points, to 8,319.07, losing 0.7 per cent in March, its second straight monthly session of losses.

a2 Milk Company ATM.NZ fell 4.2 per cent to an over five-week closing low, accounting for about half of the losses on the benchmark.

REUTERS