Commodities drag Australian shares lower on China stimulus letdown
Updates to close
Miners at lowest since late September
Gold stocks hit 1-month low
Paladin Energy down nearly 30%
By Sneha Kumar
Nov 12 (Reuters) -Australian shares fell on Tuesday, as mining and energy stocks slipped tracking commodity prices after China's stimulus plan announced last week disappointed investors seeking demand growth in the world's second-biggest economy.
The S&P/ASX 200 index .AXJO closed 0.1% lower at 8,255.6 points. The benchmark had finished 0.4% lower on Monday.
"The ASX was unable to keep up with gains made on Wall Street in the prior session due to the resource-heavy nature of the local bourse," said Tim Waterer, chief market analyst at trading firm KCM Trade.
Heavily-weighted miners .AXMM shed 1.5% to close at their lowest since late September. Iron ore traded near its two-week low as investors assessed soft economic data from China after Beijing's fresh stimulus measures failed to impress. IRONORE/
"China's stimulus measures failed to "wow" the market, and there remains doubts as to how effective the debt restructuring plans will be in terms of kickstarting the Chinese economy," Waterer said.
Australia's top trading partner China's shaky outlook drove local mining heavyweights BHP BHP.AX and Rio Tinto RIO.AX down 1.8% and 1.6%, respectively.
However, Fortescue FMG.AX gained 0.1%.
Gold hovered near one-month lows due to a strong U.S. dollar, sending local gold miners .AXGD down 3.7% to their lowest since Oct. 19. GOL/
Evolution Mining EVN.AX and Northern Star Resources NST.AX eased 3.5% and 2.7%, respectively.
Energy stocks .AXEJ dropped to a two-month low after sliding 1.7% in the session, while oil prices held its ground. O/R
Sector major Woodside Energy WDS.AX closed 0.7% lower.
In company news, Paladin Energy PDN.AX slumped nearly 30% to its lowest since June 2023, weighing the moston the benchmark index.
The uranium producer slashed full-year production forecast for its Namibia mine on operational challenges and delays in production ramp-up.
Financials .AXFJ gained 0.2%, with three of the "Big Four" banks in the green. National Australia Bank NAB.AX shed 3%.
New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.5% to 12,749.36 points.
Reporting by Sneha Kumar in Bengaluru; Editing by Sumana Nandy
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