Australia: Shares post first weekly loss as bond yields spike

[SYDNEY] Australian shares ended lower on Friday to post their first weekly loss in three weeks as a spike in US bond yields hurt risk appetite globally, while weak commodity prices prompted heavy selling in domestic energy and mining stocks.

The S&P/ASX 200 index fell 0.6 per cent to close trade at 6,708.2 points. The benchmark shed 0.9 per cent for the week.

Dampening risk appetite further was data that showed retail sales fell unexpectedly in February as Covid-19 lockdowns in Victoria and Western Australia shut shops and took some steam out of an otherwise strongly expanding economy.

However, despite the blimp in February, the outlook for retail trade remains strong, Citi Research analysts wrote in a note. "Ongoing vaccinations, continued recovery in the labour market and better news globally around the pandemic will likely buttress consumer sentiment over the coming months." Australia shares tracked the overnight slump in Wall Street after the Nasdaq tumbled 3 per cent, hurt by rising Treasury yields and fresh worries about the pandemic in Europe.

Energy stocks were the biggest drag in the index, dropping up to 3.5 per cent, after oil prices slumped.

Sector heavyweight Woodside Petroleum was down 3.3 per cent, the biggest loser in the sub-index, followed by Santos that lost 2.5 per cent.

New Zealand's benchmark S&P/NZX 50 index ended 0.2 per cent higher to finish the session at 12,515.2 points.

REUTERS