Australia: Shares fall as recession risks dent investor appetite

AUSTRALIAN shares fell on Monday, dragged lower by mining stocks, with investors globally maintaining a cautious stance over rate-hike worries and as tightening Covid-19 restrictions in Shanghai fuelled concerns about a possible recession. The S&P/ASX 200 index was down 0.9 per cent at 7,143.50, as of 0030 GMT. The benchmark ended 2.2 per cent lower on Friday. Chinese authorities reinforced the lockdown in Shanghai they imposed more than a month ago as part of their tough Covid-19 response policy that has hit economic activity. On the domestic bourse, miners tracked lower iron ore prices and slumped 1.1 per cent to lead the losses in the Australian benchmark index. Sector heavyweights BHP Group, Rio Tinto and Fortescue Metals Group were down between 0.7 per cent and 2.3 per cent. Financials lost 1.1 per cent, while Westpac Banking Corp was one of the few gainers in the sub-index, rising 2.1 per cent, after the country’s third-largest bank forecast lower expenses in the second half with its cost-reset plan in full swing. The remaining lenders of the “Big Four” banks slipped between 0.3 per cent and 3.2 per cent. Technology stocks, which slumped 3.1 per cent, were the top-percentage losers in the benchmark, while gold stocks retreated 1.2 per cent. Domestic energy stocks were up 0.6 per cent after crude prices rose last week on supply concerns. In other news, broadband services provider TPG Telecom said it will sell its passive mobile tower and rooftop infrastructure assets to Canada’s OMERS Infrastructure Management Inc for A$950 million (S$931.1 million). It was down 0.5 per cent. New Zealand’s benchmark S&P/NZX 50 index fell 0.6 per cent to 11,542.62. Shares of Fonterra climbed 1.6 per cent despite the dairy giant’s decision to cut forecast range for the price it pays farmers for milk for the 2021/22 season as demand is hit by China’s lockdowns, the Russia-Ukraine conflict, and an economic crisis in Sri Lanka. AFP