Australia: Shares struggle as investors book profits; New Zealand up

[BENGALURU] Australian shares declined on Friday as investors booked profits after three sessions of gains amid persisting concerns around the global economic impact of the deadly coronavirus in China.

The S&P/ASX 200 index slipped 0.6 per cent to 7,010.70 by 0130 GMT, tracking declines in its regional peers.

"We have come off the back of three straight days of gains, and very strong gain yesterday after China tariffs announcement... There is not enough good news to continue to lift the market at the same pace we saw earlier," said Steven Daghlian, market analyst at CommSec.

Weighing on the sentiment further, the Reserve Bank of Australia (RBA) slashed forecasts for economic growth in the near term to reflect the drag from bushfires and drought, and the coronavirus.

Central bank governor Philip Lowe said the coronavirus outbreak represented a new source of uncertainty, adding that the risks to Australian economy would be "large".

The death toll from the outbreak crossed 600 as of Thursday, further deepening worries about its economic impact in China, Australia's largest trading partner.

Farmers across Australia's east coast have been battling drought conditions for more than three years, while bushfires wreaked havoc for over four months, putting the country's economy at peril.

The financials sub-index slipped as much as 0.8 per cent, with all the "Big Four" banks trading in the red.

Commonwealth Bank of Australia edged down 0.3 per cent, while Westpac Banking Corp lost up to 1.2 per cent.

The energy index led the declines, on track to post its worst weekly fall in nearly six months.

Heavyweights Woodside Petroleum and Oil Search fell 1.8 per cent and 1.4 per cent, respectively.

The mining sector slipped up to 1 per cent, on track for its third consecutive weekly loss.

BHP Group and Fortescue Metals Group were down as much as 1.8 per cent and 3 per cent, respectively.

Gold stocks rebounded after two consecutive days of losses as investors scurried to safe-haven assets.

Newcrest Mining and Northern Star Resources gained up to 1 per cent and 2.2 per cent, respectively.

New Zealand's benchmark S&P/NZX 50 index was up 1.3 per cent at 11,756.78, reopening from a holiday on Thursday.

Kathmandu Holdings, the top percentage gainer in the index, rose up to 15 per cent after the outdoor retailer forecast a nearly 40 per cent rise in its first-half group underlying operating earnings.

REUTERS