Australia, New Zealand: Shares tumble on fears of virus resurgence as economies reopen

[BENGALURU] Australian shares extended losses for a second session on Wednesday as investors feared the decision to reopen businesses from the lockdown would lead to a second wave of coronavirus outbreaks and set back economic recovery.

The S&P/ASX 200 index was down 1.27 per cent at 5,334.3 points, as of 0057 GMT. The benchmark settled 1.07 per cent lower on Tuesday.

Leading US infectious disease expert Anthony Fauci warned that the virus was not yet under control and that there would not likely be a treatment or vaccine in place by late August or early September.

Investors also maintained a cautious stance ahead of Australia's first-quarter wage growth data, while New Zealand's cash rate decision is due later in the day.

Leading the fall on the Australian benchmark, energy stocks shed over 3 per cent to hit its lowest since May 5, despite a rise in oil prices.

Santos fell as much as 3.4 per cent, while Oil Search dropped nearly 3 per cent.

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Healthcare stocks slid as much as 2.3 per cent, hitting a low of more than two weeks. Heavyweight drugmaker CSL Ltd fell up to 2.5 per cent, while medical services provider Healius tumbled 4.5 per cent to a three-week low.

Financials shed about 2 per cent to mark its lowest since May 4, with all the "Big Four" trading in negative territory.

Shares of top lender Commonwealth Australia Bank weakened 1.5 per cent after the lender reported a 25 per cent slump in quarterly profit and announced more provisions to cover credit losses arising from the Covid-19 crisis.

The turmoil relating to worries of another wave of coronavirus, drove investors scurrying over to safe-haven assets. Gold stocks bucked the trend to rise as much as 0.5 per cent, helped by Alacer Gold that climbed nearly 8 per cent, and Oceanagold's 3 per cent gain.

Meanwhile, New Zealand's benchmark S&P/NZX 50 index dropped nearly 1.2 per cent to 10,692.09.

The top percentage losers on the were Skycity Entertainment Group and Fletcher Building with each dropping about 4 per cent.

REUTERS