Australia: Shares fall as commodities slump hits gold, miners

[BENGALURU] Australian shares fell on Wednesday, dented by heavyweights mining and gold sectors after most commodity prices took a hit on demand crunch as the greenback strengthened.

The benchmark ASX 200 index was down 0.4 per cent at 7497.40 points, as of 0034 GMT.

Gold prices were set for their biggest intraday drop in a month, as a buoyant dollar and higher yields took the shine off the metal, while concerns about weak demand in the United States and Asia pressured oil to drop 1.4 per cent.

On the pandemic front, new Covid-19 cases fell for a third straight day in Sydney, with authorities vaccinating the country's citizens at a rapid pace.

Miners lost nearly 1 per cent as copper prices hit their lowest in five months.

Global miners Rio Tinto and BHP Group fell 0.3 per cent and 1 per cent, respectively.

Australian gold stocks shed the most, losing 2.5 per cent to hit their lowest level since Aug 27, with Dacian Gold down 4.4 per cent to be the top loser in the sub-index.

The energy index followed course, declining 0.9 per cent, with coal miner Whitehaven Coal Ltd as the worst performer.

Banking stocks were the only sector in positive territory as they added 0.5 per cent to mark their highest level in three weeks.

The sub-index was lifted by Macquarie Group, which hit a record high despite forecasting "slightly" lower first-half results, compared with the second half of fiscal 2021.

The "Big Four" banks, however, traded in the red.

New Zealand's benchmark NZX 50 index fell 0.5 per cent to 13,262.66 points.

Dairy firm Synlait Milk was top loser on the bourse after it announced it was discussing a proposal to cut its headcount by 15 per cent with its staff and union representatives.

In other markets, Japan's Nikkei was up 0.2 per cent, while the S&P E-mini futures were down 0.02 per cent.

REUTERS