Australia: Shares fall further as pandemic fears mount; New Zealand down

[BENGALURU] Australian shares fell more than 2 per cent on Wednesday, extending losses into a fourth session, after US health officials warned of a domestic coronavirus outbreak amid its rapid spread to more countries beyond China.

The S&P/ASX 200 index declined 2.2 per cent, or 148.9 points, to 6,717.70 by 0157 GMT, shedding more than 6 per cent in the past four sessions. Selling was broad-based, with nearly 93 per cent of stocks trading in the red.

A top official at the US Centres for Disease Control and Prevention urged Americans to begin preparing for coronavirus to spread within the country, while another official said it was no longer a question of if, but when, the virus would become a global pandemic.

The World Health Organization said countries need to prepare immediately for an outbreak of the virus so they can respond rapidly when it arrives.

The flu-like virus has now spread to several countries in Europe and the Middle East, with Switzerland, Austria and Romania reporting their first infections on Tuesday.

"There is concern that the containment of the virus might not be as simple, or as quick, as what markets were expecting early in the year when it was considered just a flash in the pan," said James Tao, market analyst at CommSec.

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Heavyweight financials dragged down the Australian bourse, with the so-called "Big Four" banks declining between 1.1 per cent and 1.8 per cent. Both Westpac Banking Corp and National Australia Bank lost 1.7 per cent.

Miners slumped to their lowest in nearly three months, with BHP Group and Rio Tinto dropping 2.3 per cent and 1.9 per cent, respectively.

"China being Australia's largest trading partner there is certainly a potential impact not only on demand for commodities but also on the supply chain coming out of China," CommSec's Tao said.

Energy stocks fell to a more than six-month trough as oil prices extended losses overnight. Woodside Petroleum slid 3.7 per cent, while Oil Search lost 2.5 per cent.

The technology sub-index declined 3.1 per cent, extending losses into a seventh session, tracking the sell-off in US peers.

Meanwhile, Healius surged 16.3 per cent after the medical centre operator late on Tuesday said private equity firm Partners Group offered to buy it for US$1.40 billion.

In New Zealand, the benchmark S&P/NZX 50 index was down 1 per cent, or 115.13 points, at 11,604.10 after declining 2.2 per cent in early trade.

Port of Tauranga and SKY Network Television were the worst performers on the index, falling 4.6 per cent and 3.3 per cent, respectively.

REUTERS