Australia: Shares end lower on weak Chinese data, global inflation fears

[SYDNEY] Australian shares ended lower on Friday, dragged down by major banks and heavyweight miners, as a slew of weak economic data from China and growing global inflation concerns doused risk appetite.

The S&P/ASX 200 index fell 2 per cent to end at 7,185.5 and finished the week 2.1 per cent lower. The benchmark rose 1.88 per cent on Thursday.

Australia's top trading partner, China, is in the grip of a power crunch, impacting the country's factory activity which unexpectedly shrank in September, while a softened property market dealt a fresh blow to the waning economic momentum.

However, Australia lifting restrictions on international travel ahead of schedule next month, aided sentiment and drove travel and tourism stocks higher.

"Australian market is mainly pulling back on China growth worries and instability in its real estate market, along with stagflation and tapering worries in the US," said Mathan Somasundaram, chief executive officer at Deep Data Analytics.

"Concerns are looming over China's economic slowdown with the country flagging that it's in no hurry to push up stimulus and suggesting bailing out the locals while leaving offshore investors out in the cold."

Financials fell 2.8 per cent, with the country's largest lender Commonwealth Bank leading losses, skidding 4.1 per cent, followed by Westpac, down 2.3 per cent.

Miners dropped 1.9 per cent as prices of copper, aluminium and nickel fell on a firmer US dollar.

Mount Gibson Iron was the top loser on the sub-index, dropping 7.3 per cent, followed by Mineral Resources, losing 6.9 per cent.

Travel stocks were a rare bright spot on the local bourse after reports of the nation's reopening plan. Travel firm Webjet gained as much as 2.4 per cent, while flight operator Qantas Airways jumped up to 1.8 per cent.

New Zealand's benchmark S&P/NZX 50 index finished flat at 13,279.2.

REUTERS