Australia: Shares fall on Ukraine jitters; CIMIC Group soars

[BENGALURU] Australian shares dropped nearly 2 per cent on Thursday to hit their lowest in more than two weeks, as Ukraine announced a state of emergency amid rising fears of a full-scale Russian invasion, while CIMIC Group soared over 30 per cent following a bid from Hochtief.

The S&P/ASX 200 index was down 1.8 per cent at 7,077.80 by 2329 GMT. The benchmark rose 0.6 per cent on Wednesday.

Global markets reacted sharply after Ukraine told its citizens in Russia to immediately come home and the US State Department mentioned that a Russian invasion remained potentially imminent.

Miners plunged 3 per cent to their lowest since early February, as iron ore prices slumped on concerns regarding demand prospects in China.

Sector heavyweights BHP, Rio Tinto, and Fortescue Metals fell between 2.4 per cent and 5.3 per cent.

Tech stocks dropped as much as 4.5 per cent to hit their lowest since June 2020. ASX-listed shares of Block Inc lost up to 8.5 per cent, while Xero slid 4.4 per cent.

Qantas Airways fell 1.7 per cent after it posted a bigger-than-expected half-year loss and forecast a A$650 million hit to second-half earnings before interest and tax due to Omicron.

Shares of CIMIC Group jumped nearly 34 per cent to hit their highest in more than four months after the construction firm received a A$1.47 billion bid from Hochtief for the remaining 21.4 per cent stake in the Australia firm.

New Zealand's benchmark S&P/NZX 50 index was down 0.6 per cent at 12,057.92.

Broadcaster Sky Network Television lost 7.1 per cent after reporting a 29 per cent fall in half-yearly net profit, while Air New Zealand fell as much as 3 per cent after saying it was heading for its biggest annual loss since 2001. REUTERS