INSUBCONTINENT EXCLUSIVE:
Materials and energy stocks drove declines in Australian shares on Tuesday as the escalating US-China trade war put pressure on commodity
and oil prices.
The SP/ASX 200 index declined 0.2 per cent or 12.2 points to 6,172.8 by 0200 GMT
The benchmark rose 0.3 per cent on Monday.
Materials, especially mining stocks, were under the cosh on Tuesday as reports of new US trade
tariffs on China pushed industrial metals lower.
Benchmark copper on the London Metal Exchange fell 0.8 per cent, driving the metals and
mining index 0.9 per cent lower.
Dalian iron ore dipped 0.5 per cent, pressuring global miner BHP which fell 0.8 per cent and was the top
drag on the benchmark.
A slide in prices hit gold miners
Newcrest Mining Ltd tumbled as much as 2.4 per cent, its biggest intraday per centage fall since August 24, while St Barbara Ltd fell 2.3
per cent.
Energy stocks also fell as the Sino-US trade war clouded the oil demand outlook.
"More tariffs means less growth, less growth
means less demand for oil, so that's kind of how the market is seeing it," said Mathan Somasundaram, Market Portfolio Strategist with Blue
Ocean Equities.
Origin Energy Ltd dropped 3.1 per cent to a one-week low, while Woodside Petroleum Ltd fell 1 per cent.
Health care stocks
also fell as investors took profits
Drugmaker CSL Ltd, which has had a stellar year so far marked by multiple all-time highs and a record annual profit, dipped 1.2 per cent,
while Cochlear Ltd weakened 1.3 per cent to its lowest in more than a month.
Bucking the trend, financials stocks rose 0.4 per cent, braking
the benchmark's losses.
Index heavyweight Australia and New Zealand Banking Group Ltd firmed 0.8 per cent, while top lender Commonwealth
Bank of Australia rose 0.4 per cent to its highest since August 31.
"Global investors are pulling money out of emerging markets and putting
that money into our market as a back-up, so that's why our banks are remaining relatively positive," said Somasundaram.
Across the Tasman
Sea, New Zealand shares traded unchanged as gains in telecommunication services and industrials were offset by losses in consumer
staples.
The benchmark SP/NZX 50 index rose 0.1 per cent or per cent or 5.67 points to 9,277.2.
Teleco Spark New Zealand Ltd gained 1.5 per
cent and was the top boost to the benchmark, while Auckland International Airport Ltd firmed 1.2 per cent to a near two-week high.
Earlier
in the day, the airport operator said it was considering an offer of fixed rate bonds to New Zealand retail investors and institutional
investors.
But dairy operator A2 Milk Company Ltd dipped 1.8 per cent and was the biggest drag on the benchmark
(Reporting by Aditya Soni in Bengaluru; Additional reporting by Shanima A; editing by Eric Meijer)
