Australia: Shares suffer worst day in nearly two months on virus resurgence

[BENGALURU] Australian shares on Wednesday recorded their worst session in nearly two months, with travel stocks declining significantly, as investors refrained from placing big bets on concerns over a global spike in Covid-19 infections.

The S&P/ASX 200 slipped 0.3 per cent to 6997.40 at the close of trade to end lower for the second consecutive day.

Asian shares and US stock futures slipped as worries over resurgent cases, particularly in India, stoked fears about global growth and demand for commodities such as oil.

New Zealand authorities also reported that a worker at Auckland airport had tested positive for Covid-19 on Tuesday, just a day after opening a travel bubble with Australia.

"Covid numbers in India and other countries are still a very big concern for the global economy," Brad Smoling, managing director at Smoling Stockbroking said.

"There is also a larger percentage of retail investors in equity markets now and this increases the volatility."

Australian travel-related stocks dropped, with Qantas Airways declining 1.4 per cent and Flight Centre Travel dropping 1.9 per cent.

Tech stocks slumped 1.9 per cent and ended lower for a third straight day. Software maker Nuix gave up 15.4 per cent after the company slashed its forecast for annual revenue and contracts.

Energy stocks and miners lost 1.5 per cent and 0.5 per cent, respectively, as commodity prices were also jolted by concerns around rising infections.

BHP fell to a one-month low after the mining heavyweight reported lower third-quarter iron ore output and cut its production forecast for some divisions.

New Zealand's benchmark S&P/NZX 50 index slid 1.1 per cent to end the session at 12,535.34.

The country's consumer price index outpaced expectations in the first quarter, data showed, though economists said the rise was not yet enough for the central bank to consider raising interest rates.

REUTERS