Australia: Shares slip as commodity stocks drag on China’s Covid-19 woes

AUSTRALIAN shares slipped on Wednesday, dragged down by mining and energy stocks, hit by subdued commodity and metal prices following fresh Covid-19 curbs in China to control rising cases.

The S&P/ASX 200 index fell as much as 0.3 per cent to 6584.1 by 0041 GMT.

The benchmark lost 1 per cent on Tuesday. Leading declines, energy stocks receded 2 per cent, their biggest drop in a week, as oil prices fell on weak demand in top crude importer China and a strong dollar.

Index heavyweights Woodside Energy and Santos shed 3.1 per cent and 2.7 per cent, respectively.

Domestic miners erased as much as 1.6 per cent to hit their lowest level since November, as iron ore prices fell on persistent demand woes in top metal consumer China. Sector majors Rio Tinto, BHP Group and Fortescue Metals skidded between 1 per cent and 2 per cent.

Bucking the trend, financials added as much as 0.2 per cent, with National Australia Bank and Macquarie advancing 0.3 per cent and 0.6 per cent, respectively.

However, Australia and New Zealand Banking Group lost 0.4 per cent, after the company confirmed that it was in discussions with US private-equity firm KKR & Co for a potential acquisition of Australian software firm MYOB Group.

The technology sub-index was a bright spot, jumping 1.3 per cent.

Shares of network services provider Megaport and accounting software producer Xero gained as much as 3.1 per cent and 2.1 per cent, respectively.

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Gold stocks tracked weak bullion prices pressured by strength in the dollar, losing as much as 0.6 per cent.

Sector leaders Northern Star Resources and Newcrest Mining slipped 0.4 per cent and 0.7 per cent, respectively.

New Zealand’s benchmark S&P/NZX 50 index jumped 0.4 per cent to 11152.1, with investors awaiting the central bank’s rate decision due later in the day.

Maybank analysts expect another four 50-basis-point hikes from the Reserve Bank of New Zealand this year. REUTERS