Australia: Shares edge lower as US jobless data stokes recovery fears

[BENGALURU] Australian shares closed marginally lower on Friday as losses in healthcare stocks outweighed gains in the energy sector, while bleak US jobless data added to fears of a prolonged economic recovery.

The S&P/ASX 200 index slipped about 0.1 per cent to 6,111.20, after a 0.8 per cent fall on Thursday. For the week, the benchmark lost about 0.2 per cent, snapping two straight weeks of gains.

Data released overnight showed the number of Americans filing a new claim for unemployment benefits rose unexpectedly back above the one million mark last week, a setback for a struggling US job market crippled by the coronavirus pandemic.

"The worry is the ability for us to continue to grow," said Damian Rooney, director of equity sales at Argonaut, adding that the weekly US unemployment data was concerning.

"The equity market has been a good friend... but the merry-go-round could stop at any stage."

Smoling Stockbroking managing director Brad Smoling said there was a strong sense in the market that a risk-off mode could come very quickly in case of a sell-off in the United States.

Australian healthcare stocks fell 1.3 per cent, dragged by a 1.5 per cent slide in sector heavyweight CSL, while Ansell lost 2.2 per cent. On a weekly basis, the sub-index jumped 4.3 per cent in its biggest gain since the week ended April 10.

Energy stocks settled 1.3 per cent higher, lifted by a rise in oil prices on efforts by major producers to hold back output.

Santos gained 3.6 per cent, while Woodside Petroleum added 1 per cent.

New Zealand's benchmark S&P/NZX 50 index ended 1.5 per cent higher at 11,835.94, boosted by technology stocks.

Among top gainers, Skellerup Holdings rose 6.43 per cent, while Kiwi Property Group climbed 5 per cent.

Dairy producer a2 Milk finished up 1.8 per cent after it offered to buy a 75.1 per cent stake in Mataura Valley Milk from China Animal Husbandry Group.

REUTERS