Australia: Shares end lower as banks drag amid crisis in Ukraine

[BENGALURU] Australian shares closed down on Friday (Feb 18) in their worst day in 3 weeks, weighed by financial stocks as investors closely watched rising tensions between the West and Russia over Ukraine.

The S&P/ASX 200 index ended 1 per cent lower at 7,221.7, its worst session since Jan 27. Investors largely shrugged off news of US Secretary of State Antony Blinken accepting an invitation to meet with Russian Foreign Minister Sergei Lavrov late next week provided Russia does not invade Ukraine.

The benchmark was marginally up for the week.

Shelling in Ukraine on Thursday renewed Western fears of an imminent Russian invasion as US President Joe Biden said Moscow is preparing a pretext to justify a possible attack.

"It wouldn't be surprising to have markets remain volatile in this type of manner for the time being until we get more clarity out of Ukraine and Russia... and any updates on interest rate hikes as well," said Steven Daghlian, market analyst at CommSec.

Financials shed 0.9 per cent, with 3 of the country's 4 largest lenders losing between 0.3 per cent and 1.1 per cent.

QBE Insurance plunged 8.7 per cent after full-year profit missed analysts' estimates, while Magellan Financial soared 18.5 per cent on strong interim earnings.

Technology stocks fell 1.9 per cent, their lowest in 3 weeks, tracking an overnight slide in their US counterparts.

ASX-listed shares of Block, Computershare and Xero dropped between 1.8 per cent and 3.7 per cent.

Meanwhile, gold stocks gained 1.9 per cent in their best week since May 8, 2020 as the heightened tensions in Ukraine boosted the bullion's safe-haven appeal.

Sector leaders Northern Star Resources and Newcrest Mining rose 1.5 per cent and 2.1 per cent, respectively.

In other news, Australia's biggest cities including Sydney and Melbourne eased more Covid-19 curbs amid a steady fall in hospital cases.

New Zealand's benchmark S&P/NZX 50 index was down 0.9 per cent to 12,141.89.

Reserve Bank of New Zealand's February monetary policy statement is due next week, with Citibank analysts expecting the central bank to raise the official cash rate by a further 25 basis points. REUTERS