Australia, New Zealand: Shares fall as virus fears deepen

[BENGALURU] Australian shares fell on Wednesday on worries that a worsening coronavirus outbreak in the country's second-most populous state would further slam economic activity, while gold stocks slumped after bullion prices plunged overnight.

The S&P/ASX 200 index fell 0.44 per cent to 6,114.60 points by 0117 GMT, giving up nearly all of Tuesday's gains.

The state of Victoria, whose capital city of Melbourne was forced into another lockdown last week, recorded its deadliest day of the pandemic on Wednesday and the biggest daily rise in infections in three days.

Gold stocks plunged nearly 5 per cent, the most since May 27, after prices of the precious metal slumped overnight because of a broader lift in risk appetite.

Evolution Mining lost over 7 per cent as it suspended operations at its Red Lake Gold mine in Canada due to a nearby forest fire threat.

The mining sub-index dropped 1.9 per cent to its lowest in a week, with global miners BHP Group and Rio Tinto falling about 1 per cent each.

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Financial stocks were among the sole gainers in the benchmark index, rising 0.5 per cent, led by Virgin Money UK, up 4.8 per cent.

Commonwealth Bank of Australia, the country's largest lender, dipped 0.4 per cent after cutting its final dividend for the first time in more than a decade, as annual cash profit dropped 11.3 per cent, narrowly missing analysts' estimates.

New Zealand's benchmark S&P/NZX 50 index was down 1.4 per cent at 11,486.27 by 0118 GMT, on course for its worst session since June 12, as consumer and tourism-related stocks fell.

The country's biggest city was preparing to go into lockdown again, following new coronavirus cases that ended a 102-day record run without any new infections.

Investors will also focus on New Zealand's central bank policy meeting later in the day, where it is widely expected to hold rates steady at a record low of 0.25 per cent.

REUTERS