Australia: Shares end the day lower

[SYDNEY] Australian shares snapped two straight sessions of gains on Wednesday as risk sentiment was hit by the rising coronavirus death toll in the country's second-most populous state, although additional stimulus and hopes for a local vaccine capped losses.

Victoria recorded its second-deadliest Covid-19 daily death toll on Wednesday, while the state government's intention to extend a state of emergency by another year also weighed on the market.

The S&P/ASX 200 index settled 0.7 per cent lower at 6,116.4 after declining 1.3 per cent in intraday trade.

"We are sort of in the eye of the storm and there is more bad weather coming for the Australian economy," said Brad Smoling, Managing Director at Smoling Stockbroking.

"The only saviour will be some of the commodities, the rest of the economy is really suffering." The benchmark stock index cut some of its losses after the government announced fresh stimulus by way of US$719.20 million in defence spending to grow the military and support employment.

Hopes that local researchers could start human trials of a coronavirus antibody therapy in early 2021 and a large-scale trial of a vaccine could begin by the end of this year also supported the partial recovery late in the session.

New Zealand's benchmark S&P/NZX 50 index ended 0.3 per cent higher at 12,031.51, marking its fourth straight session of gains, with Meridian Energy up 1.6 per cent while Fisher & Paykel Healthcare Corp added 2 per cent.

REUTERS