Australia: Shares drop 1% as fresh coronavirus curbs dent sentiment

[BENGALURU] Australian shares fell 1 per cent on Wednesday as fresh coronavirus-related restrictions fanned fears of further economic damage, though losses were limited by a rally in gold stocks after the precious metal surged to a record high.

The S&P/ASX 200 index was down 1 per cent at 5,979.3, as of 0102 GMT.

Australia's Queensland state said it would seal off its border with New South Wales and capital Canberra to hold back a second wave of coronavirus cases.

Australia's second-most populous state Victoria has also enforced stringent movement controls and ordered the closure of large parts of the local economy in a bid to contain an alarming resurgence in coronavirus cases.

Heavyweight financials were the biggest laggards in the benchmark, easing up to 2.5 per cent with top lenders Commonwealth Bank of Australia and Westpac Banking Corp dropping 2.6 per cent and 3.1 per cent, respectively.

Telecom firm Telstra Corp dropped 1.2 per cent after announcing the sale of its Melbourne data centre for about US$300 million.

On the flip side, gold stocks jumped 3.7 per cent after bullion prices touched fresh highs as hopes of further US stimulus and a weaker US dollar bolstered the safe-haven asset's appeal.

Newcrest Mining and Australia-listed shares of AngloGold Ashanti climbed 3 per cent and 4.7 per cent, respectively.

The gains in gold stocks helped miners trade in the black as well.

New Zealand's benchmark S&P/NZX 50 index eased 0.4 per cent to 11,728.31.

The country's unemployment rate unexpectedly declined in the second quarter, but the data did not fully reflect the weakness in the labour market as fewer people actively sought work.

REUTERS