Australia: Shares fall for third day as miners drag on China worries

[BENGALURU] Australian shares ended in the red for a third straight session on Wednesday (Nov 10), dragged by mining stocks as iron ore prices plunged due to the Chinese property sector's worsening liquidity crisis.

The S&P/ASX 200 index ended 0.14 per cent down at 7,423.9, having lost 0.24 per cent on Tuesday (Nov 9).

Asian stock markets were tugged lower by fresh concerns about the solvency of property developers and high factory inflation in China, Australia's largest trading partner, which also led to a fall in iron ore and copper futures.

That resulted in the Australian metals and mining index shedding 1.9 per cent, with BHP, Rio Tinto and Fortescue dropping between 1.7 per cent and 2.7 per cent each.

Energy stocks tumbled 1.1 per cent despite strength in crude prices, with Woodside Petroleum leading losses.

"We've had a couple of days of gains for resources but it looks to be unwinding a little bit at the moment, and we seem to be taking it in turns with the banks," said Henry Jennings, senior analyst and portfolio manager at Marcus Today Financial Newsletter.

"Today's the day that the banks are better and the resources are easier, but it is really on the back of those moves in Dalian iron ore futures."

Financials edged up 0.7 per cent, recouping some of Tuesday's losses. The country's No 2 lender National Australia Bank led gains in its best session in a year, soaring 4.4 per cent, after multiple brokerages raised their price targets on the bank's stock.

The other three of the "Big Four" banks also closed in the black, rising between 0.1 per cent and 0.8 per cent.

Healthcare and tech heavyweights Cochlear and Afterpay shed 2.4 per cent and 2.2 per cent, respectively, as high-risk, high-growth sector stocks were sold off during the session.

New Zealand's benchmark S&P/NZX 50 index fell 0.52 per cent to 13,022.46, marking its worst intraday drop in more than a week.

REUTERS