Australia: Shares open lower after new coronavirus cluster emerges in Sydney

[BENGALURU] Australian shares opened lower on Monday, hurt by losses among miners and energy stocks as news of a new coronavirus cluster near Sydney soured sentiment, and ahead of important domestic production results later this week.

The S&P/ASX 200 index fell 0.79 per cent to 6,662.5 points by 0005 GMT. The benchmark closed roughly flat on Friday.

Health authorities said on Sunday they were investigating a mystery Covid-19 case of a man in the Sydney suburb of Berala. All six locally acquired cases registered on Sunday were close contacts of the man.

Mining was the worst hit sector, losing 2 per cent as heavyweights BHP Group and Rio Tinto dropped 3 per cent and 2.2 per cent respectively ahead of production reports slated to come in later in the week.

"There seems to be a bit of profit-taking among mining stocks ahead of the large risk event that will be the production results. This is likely driving the movement, along with the broader coronavirus concerns," said Nick Twidale, chief executive officer - head of APAC at First Prudential Markets.

Energy stocks fell 1.9 per cent as oil prices suffered on concerns about Chinese cities entering lockdown due to coronavirus outbreaks. Oil and gas explorers Santos and Oil Search lost 1.9 per cent and 2.3 per cent, respectively.

Meanwhile, Woodside Petroleum on Monday said the amount of liquefied natural gas (LNG) it supplies to German utility Uniper SE would be doubled under an expanded deal.

The company's stock was down 1.5 per cent, in line with the broader sector's movement.

Financials were also lower, with the so called "big four" banks falling between 0.4 per cent and 1 per cent.

The number of issues on the ASX that advanced were 527 while 627 declined.

New Zealand's benchmark S&P/NZX 50 index fell 0.1 per cent, hurt by losses among financial and industrial stocks.

REUTERS