Australia: Tech, banks drag shares lower as states enter lockdown

[BENGALURU] Australian shares fell on Monday, weighed down by banking and technology stocks, as investors fretted tighter lockdown curbs after the country over the weekend reported one of the highest numbers for locally acquired coronavirus cases this year.

The S&P/ASX 200 index was down 0.3 per cent at 7,286 points, as of 0026 GMT. The benchmark closed 0.5 per cent higher on Friday.

Sydney began a two-week lockdown on Sunday as the Bondi neighbourhood cluster of the highly infectious coronavirus Delta variant rose to 110 in Australia's largest city, while an outbreak in the northern city of Darwin prompted a hard two-day stay-at-home order.

Movement restrictions sent travel and tourism stocks sharply lower. Flag carrier Qantas and travel agent Flight Centre Travel Group were both down around 4 per cent.

Technology stocks were the top drag with a decline of 2 per cent. Afterpay led with a 4.1 per cent slump, followed by Nuix losing 2.4 per cent to touch a record low.

Financial stocks dropped 0.6 per cent, with the so-called "Big Four" banks shedding between 0.6 per cent and 2.5 per cent.

Shares of Westpac touched their lowest since May 21 after the Australian lender said it would sell its auto finance business to US private-equity firm Cerberus Capital Management, as it seeks to focus on its core banking operations.

Despite a slight rise in bullion prices, the gold sub-index fell 1.1 per cent, with Gold Road Resources leading losses after the company lowered its production forecast for the June quarter.

On the upside, energy stocks rose 0.6 per cent, tracking an uptick in oil prices. Sector heavyweights Woodside Petroleum and Santos gained 0.4 per cent and 1.1 per cent, respectively.

Stronger iron ore prices sent the mining sub-index 0.2 per cent higher. BHP Group added 0.8 per cent while Fortescue Metals Group jumped 0.5 per cent.

In New Zealand, the benchmark S&P/NZX 50 index fell 0.12 per cent to 12,610.5. Fonterra, however, gained nearly 2 per cent after the dairy producer said it will sell its stakes in two joint-venture farms in China's Shandong province.

REUTERS