Australia: Shares fall as resurgent virus spurs fears of unemployment

[BENGALURU] Australian shares retreated on Friday, with miners leading losses, as heightened coronavirus-induced restrictions following a second wave of infections stoked fears of further economic damage and unemployment.

The S&P/ASX 200 index fell 0.6 per cent to 6,004.3 by 0104 GMT, but was set to notch a weekly gain of 1.4 per cent.

Australia's second-largest city, Melbourne, went into a strict six-week lockdown on Thursday to limit a recent spike in cases even as policymakers attempt to soften the virus' economic blow through stimulus and financial aid.

Nearly half of all workers from private companies in Melbourne will receive the country's wage subsidy scheme, Treasurer Josh Frydenberg said, but concerns over wide-scale job losses still linger.

Prime Minister Scott Morrison said on Thursday unemployment would peak at 10 per cent, but counting workers covered under the wage subsidy scheme, effective unemployment would be closer to 14 per cent.

Heavyweight miners gave up some of their massive gains from the previous session, but were still set for their best week since May 22. Top miners BHP Group and Rio Tinto on Friday eased 1.6 per cent and 2.1 per cent, respectively.

The "Big Four" banks led declines among financials, with top lender Commonwealth Bank of Australia losing 0.9 per cent and Westpac Banking Corp slipping 1 per cent.

Insurance Australia Group dropped 1.4 per cent after reporting a substantial plunge in full-year profit as rising claims costs hurt its bottom line.

Energy stocks were the only major sub-index trading in positive territory and set for their best week since April 10 as oil prices settled just below five-month highs after solid overnight gains.

Industry giant Woodside Petroleum added 0.8 per cent, while Santos rose 1.6 per cent.

New Zealand's benchmark S&P/NZX 50 index fell 0.7 per cent to 11,683.64, with financials being the biggest drag.

Local shares of lenders Westpac Banking Corp and Australia and New Zealand Banking Group shed 1.7 per cent and 1.1 per cent, respectively.

REUTERS