Australia: Shares fall as miners slump on China scrutiny over iron ore prices
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
[BENGALURU] Australian shares fell on Tuesday as heavyweight miners were pressured by fears of higher regulatory scrutiny over surging iron ore prices in the steelmaking ingredient's top consumer, China.
The S&P/ASX 200 index fell 0.4 per cent to 6,630.1 by 0016 GMT, with top miners BHP Group and Rio Tinto giving up 2.5 per cent and 1.1 per cent, respectively.
Iron ore futures fell more than 4 per cent on Monday after China's steel producers pushed for a regulatory probe into skyrocketing prices.
Strong speculative interest in the steelmaking ingredient had pushed the benchmark spot price in China last week to the highest since February 2013 at US$159.50 a tonne.
The broader metals and mining sub-index lost as much as 2.5 per cent and was set for its worst session since Oct 10, with Fortescue Metals Group easing 4 per cent.
Beijing's top economic planner has also excluded Australia from a plan to allow coal imports from several countries without clearance restrictions, state-backed newspaper Global Times said.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
The news sparked concerns over demand for Australian coal, sending shares of its producers sharply lower. Whitehaven Coal lost 10.2 per cent, while New Hope Corp tumbled 13 per cent.
Energy companies also declined as an oil price rally lost steam on concerns of oversupply. Woodside Petroleum dropped 1.9 per cent, while Santos gave up 2.6 per cent.
Gold stocks fell over 1 per cent as the rollout of a Covid-19 vaccine in the United States sparked optimism in wider financial markets for an economic recovery.
Financials ticked down 0.2 per cent even after the country's banking regulator said banks would no longer have to hold a portion of their profit back starting next year, raising prospects for higher dividends.
New Zealand's benchmark S&P/NZX 50 index edged 0.1 per cent lower to 12,824.37, with financials and utilities dominating losses.
The island nation saw consumer confidence rebound in the fourth quarter after a sharp fall in the preceding quarter.
REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
