Australia: Shares trim losses on better-than-expected GDP data

[BENGALURU] Australian shares ended nearly flat on Wednesday, trimming earlier losses after data showed the economy performed better than expected in the June quarter, while declines in heavyweight miners offset gains in gold and energy stocks.

The S&P/ASX 200 index closed 0.1 per cent lower at 7,527.1, recovering from a 1 per cent drop earlier in the session, after data showed that Australia's second-quarter GDP rose 0.7 per cent, bucking analysts' worst fears of a negative outcome.

A negative figure, however, in the third quarter looks probable, as by far the bulk of the most recent lockdowns and movement restrictions in Australia took place in this quarter, ING analyst Robert Carnell wrote in a note.

"It doesn't put the Reserve Bank of Australia (RBA) under any pressure to respond in any direction... very modest reduction in asset purchase pace from September need not be altered."

Biotech firm Mesoblast was among the top losers on the benchmark for a second straight session, after it posted a bigger annual loss on Tuesday, and said it was still chasing an regulatory approval from the US FDA for its flagship product.

The mining sub-index lost 0.9 per cent, tracking a plunge in iron ore futures on lacklustre demand outlook. Heavyweights BHP Group, Rio Tinto and Fortescue Metals shed between 1.3 per cent and 3.2 per cent.

On the upside, gold stocks added 1.3 per cent with the bullion steady ahead of a key US jobs report, while energy stocks tracked oil prices higher.

In New Zealand, the benchmark S&P/NZX 50 index extended gains to a fourth session, ending up 0.2 per cent at 13,243.49, its highest close since Jan 27.

Tough lockdown measures enforced to beat an outbreak of the highly infectious Delta variant of the coronavirus were eased for most of the country, though Auckland will remain in strict level 4 lockdown for another two weeks.

REUTERS