Australia: Shares fall slightly as BHP leads miners lower

[BENGALURU] Australian shares closed slightly lower on Tuesday after a volatile session of trade, weighed down by miners as BHP reported a decline in first-quarter iron ore output.

The S&P/ASX 200 index fell 0.08 per cent to 7,374.9, snapping a 3-session winning streak. The mining index, which has broadly underperformed the benchmark so far this year, dropped 1.6 per cent.

Shares of BHP closed 2 per cent lower after the world's largest miner posted a near 5 per cent drop in quarterly iron ore output due to maintenance work at its Jimblebar mine and a shortage of rail labour caused by Covid-19 border restrictions.

BHP left its annual production outlook unchanged, unlike rival Rio Tinto which cut its shipments forecast because of the tight labour market. Rio Tinto and Fortescue shed 3.25 per cent and 1.2 per cent, respectively.

"Iron ore miners have been under pressure a little more because of restrictions on steel production in China," said Steven Daghlian, a market analyst at CommSec.

Financials reversed early gains to close down 0.2 per cent as the so-called "Big Four" banks slipped between 0.1 per cent and 0.5 per cent.

Daghlian attributed the market uncertainty to concerns over higher inflation and interest rates, and bond markets.

Tech stocks advanced to their highest in nearly 3 weeks, tracking overnight gains on Wall Street boosted by big tech names. The sub-index gained 1.6 per cent, with Afterpay up 2.7 per cent.

Logistics firm Brambles climbed as much as 3.9 per cent as it reported a surge in quarterly revenue and provided an upbeat annual outlook.

Gaming giant Tabcorp tumbled 2.7 per cent after announcing plans to split its businesses by mid-2022, with one-off cash costs between A$225 million (S$226.1 million) and A$275 million.

New Zealand's benchmark S&P/NZX 50 index rose 0.52 per cent to 13,065.92.

REUTERS