Australia: Shares end lower as recession fears deepen

[SYDNEY] A drop in energy stocks saw Australian shares finish lower on Wednesday, while a collapse in consumer sentiment reinforced fears of an economic fallout from the coronavirus crisis.

The S&P/ASX 200 index ended 0.4 per cent lower at 5,466.70, after starting the session in positive territory. The benchmark closed 1.9 per cent firmer on Tuesday.

A survey showed Australian consumer sentiment had crumbled in April to a 30-year low as virus-induced social distancing measures threatened to push the country's economy into its first recession in three decades.

The survey comes ahead of what is expected to be bleak unemployment data on Thursday, as listed companies in Australia and New Zealand slash jobs. Analysts expect the rate to shoot above 10 per cent in the next few months.

Adding to the gloom in markets, the International Monetary Fund warned the global economy would this year suffer its steepest downturn since the Great Depression of the 1930s.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index closed up 2.5 per cent or 250.92 points at 10,409.94, as the government prepares to announce further fiscal stimulus this week.

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Financials provided the biggest boost, with New Zealand-listed shares of lenders Westpac Banking Corp and Australia and New Zealand Banking Group clocking gains of 1.7 per cent and 2 per cent, respectively.

REUTERS