Australia: Shares reverse early gains as miners track copper prices lower

[BENGALURU] Australian shares gave up early gains on Tuesday to trade lower as heavyweight miners declined in tandem with copper prices, although a bounce-back in technology stocks limited losses.

The S&P/ASX 200 index was down 0.3 per cent to 6,781.00 by 0122 GMT, after rising 0.5 per cent earlier in the day. It had closed 0.4 per cent lower on Monday.

Overnight, the S&P 500 closed slightly lower, with banks falling amid warnings of potential losses from a hedge fund's default on margin calls, while economic optimism limited the day's declines. S&P 500 E-minis futures were down 0.25 points, or 0.01 per cent, on Tuesday.

Copper prices slid on Monday as worries about higher freight costs receded after a container ship blocking traffic in the Suez Canal was refloated.

Mining stocks in Australia fell 1.3 per cent in their biggest intraday percentage drop in more than a week, with BHP Group down 1.4 per cent and Rio Tinto falling 2.4 per cent.

Both companies have significant exposure to copper mining.

Gold stocks slid 1.2 per cent after bullion prices fell overnight on a stronger US dollar and yields. Ramelius Resources fell 3.5 per cent, Chalice Mining shed 3 per cent and Newcrest Mining declined about 1 per cent.

Financials stocks also dipped, with the country's "Big Four" banks shedding between 0.3 per cent and 1 per cent.

AGL Energy slipped, as the power producer said it was assessing its options after a state minister found that its planned liquefied natural gas import jetty at Crib Point in Victoria would have unacceptable environmental effects.

Earlier in the day, the company said it would split itself into two separate businesses in a bid to change strategy and reverse a steep share price slump it has faced.

Technology stocks rose 1.3 per cent after a near 2.8 per cent drop on Monday. Sector heavyweight Afterpay climbed 1.4 per cent, while WiseTech gained 3.3 per cent.

In New Zealand, the benchmark S&P/NZX 50 index edged up 0.1 per cent to 12,381.6.

The top percentage gainers on the benchmark index were Synlait Milk, up 3 per cent, and Scales Corp, adding 1.3 per cent.

REUTERS