Australia: Shares end almost flat as Evergrande worries weigh on miners

[BENGALURU] Australian shares closed little changed on Thursday (Oct 21) as the lifting of restrictions in Melbourne later in the night helped investor sentiment and offset worries about China Evergrande Group's potential debt default.

The benchmark index inched 0.02 per cent higher to close at 7,415.4 points.

China Evergrande Group said its US$2.6 billion stake sale to lesser rival Hopson Development Holdings had fallen through, further raising fears about offshore bond defaults from China's No 2 property developer.

The metals and mining sector, which relies considerably on exports to China, took the biggest hit on Evergrande news, falling 0.25 per cent despite strong iron ore and metal prices.

The country's 3 biggest miners BHP, Rio Tinto and Fortescue all ended the session between 0.2 per cent and 1.3 per cent lower.

Financials, however, remained strong and added 0.28 per cent despite heavyweights Commonwealth Bank of Australia and Australia and New Zealand Bank ending 0.1 per cent and 0.5 per cent lower, respectively.

The other two of the so-called "Big Four", National Australia Bank and Westpac, added 0.2 per cent and 0.6 per cent, respectively.

Wealth manager Perpetual was the top gainer on the sub-index and the benchmark, rising 7.8 per cent after reporting a jump in its assets under management.

The benchmark was also helped by engineering contractor CIMIC Group, which ended 5.9 per cent higher to become the second-biggest gainer on the main index after posting a rise in revenue and providing a positive outlook.

Tech stocks continued their rally for a third straight day, rising 0.56 per cent to hit a 3-week high as they tracked an earnings-fuelled rally on Wall Street.

The top gainers on the index were Nearmap, which rose 2.8 per cent, followed by Altium and Xero, which were up about 2.7 per cent and 2.6 per cent, respectively.

Melbourne is preparing to come out of its lockdown on Thursday night after Victoria state hit a key vaccination target, with pubs, restaurants and cafes racing to reopen their doors to fully vaccinated customers.

In New Zealand, the benchmark S&P/NZX 50 index reversed early losses to end 0.09 per cent higher at 13,125.98.

REUTERS