Australia: Shares dip as miners and Woolworths drop, inflation data hurts

[BENGALURU] Australian shares erased early gains to edge lower on Wednesday, hit by losses in mining and gold stocks as commodity prices came under pressure and a sharp fall in supermarket major Woolworths Group, while high inflation data also weighed on sentiment.

The S&P/ASX 200 index was down nearly 0.3 per cents at 7,425 after rising 0.2 per cent and was set to snap a five-session rally. The benchmark closed flat on Tuesday.

Woolworths plunged 4.5 per cent in its sharpest drop since February on flagging a slowdown in sales as lockdowns ease, making staples sub-index the top loser on ASX 200.

Aussie miners fell as much as 1 per cent as copper prices dropped. Mining giants Rio Tinto and BHP Group were down about 1 per cent and 0.8 per cent, respectively.

Simultaneously, ASX-listed shares of diary producer a2 Milk tanked up to 11.5 per cent in their worst session since Aug 26, the biggest decliner on the benchmark after a grim trading update.

The gold sub-index slid as much as 1.4 per cent, as bullion fell on dollar strength, with Kingsgate Consolidated leading losses, plunging 17.2 per cent.

Sentiment was further hurt after data showed Australian core inflation jumped to a six-year high in the third quarter.

The financials' sub-index fell 0.2 per cent after rising modestly, as investors awaited bank earnings starting on Thursday.

Three of Australia's largest banks, Australia and New Zealand Banking Group, Westpac Banking Corp and National Australia Bank, are expected to report a 79 per cent jump in earnings.

Bucking the sombre mood, country's telecom stocks rose 1.7 per cent to become the top gainer on the ASX 200, led by a 2.2 per cent jump in Telstra Corp.

New Zealand's benchmark S&P/NZX 50 index was down 0.5 per cent to 13,007.98, with a2 Milk, down 11.3 per cent, dragging the index.

Also, an ANZ Bank survey showed that New Zealand business sentiment fell in October as cost and inflation pressures intensified due to Covid-19 uncertainty.

REUTERS