Australia: Shares dip on weak corporate earnings, Covid-19 jitters

[BENGALURU] Australian shares fell on Tuesday, hurt by a drop in electrical appliance maker Breville and property listings firm Domain Holdings following downbeat financial updates, while an increase in Covid-19 infections kept a lid on risk sentiment.

The S&P/ASX 200 fell 0.6 per cent to 7,539.60 points by 1247 GMT to mark its worst day since July 28. The benchmark snapped a four-day winning streak to close 0.6 per cent lower on Monday.

Sydney, which is the epicentre of Australia's third Covid-19 wave, has witnessed a steady rise in infections and threatens to push the country's A$2 trillion (S$2 trillion) economy into its second recession in as many years.

Breville Group was the biggest loser on the benchmark, falling as much as 8 per cent to its lowest level in about a month, after its annual profit missed analysts' estimates.

Shares of Domain Holdings Australia gave up as much as 4.1 per cent despite solid annual results, as it forecast costs to rise in fiscal 2022.

Miners lost over 1 per cent and were on track for a third consecutive session of declines after iron ore and copper prices fell following glum economic data from China.

Financials were down as much as 1.4 per cent and hit their lowest level in a week, with the "big four" banks losing between 0.3 per cent and 1.8 per cent.

Westpac, the No.2 lender, said it would consider returning capital to shareholders with its full-year results but did not disclose a profit for the third quarter.

Bucking the trend, gold stocks rose 0.5 per cent, helped by firmer bullion prices.

Alkane Resources and Regis Resources led gains on the subindex as they added 4.8 per cent and 0.8 per cent, respectively.

New Zealand's benchmark S&P/NZX 50 rose 0.5 per cent to 12,789.58 points.

Electricity retailer Mercury NZ was the biggest gainer, adding 2.5 per cent after it forecast higher core earnings for fiscal 2022.

REUTERS