Miners drag Australian shares lower on weak China economic outlook
Updates to close
ASX 200 snaps three-day winning streak
Mining stocks at over 1-month low
IT stocks hit record high
By Sneha Kumar
Nov 11 (Reuters) -Australian shares snapped a three-session winning streak to decline on Monday, weighed down by miners as iron ore prices faltered on bleak economic outlook in China.
The S&P/ASX 200 benchmark index .AXJO closed 0.4% lower at 8,266.2 points. The benchmark had added more than 2% last week.
"While the afterglow of Trump's victory lingers, traders have shifted their focus to another major uncertainty in the global economy," said Hebe Chen, market analyst at IG.
"Not only has China's recent stimulus package fallen short of investor expectations, but the weekend's fresh disappointments from the inflation report and FDI data have also reinforced the view that China is still far from stabilizing its beleaguered economy."
An economic slowdown or standstill in Australia's biggest trading partner China spells trouble for Australian miners, who are heavily dependent on selling to China.
Local miners .AXMM shed more than 3% to hit their lowest since late September, tracking a decline in iron ore prices. IRONORE/
BHP BHP.AX lost 4.1%, Rio Tinto RIO.AX slipped 3.1% and Fortescue FMG.AX shed 7.3%.
Following Friday's rally in U.S. stocks, Australian tech stocks .AXIJ soared to a record high on gaining 1.4%.
The biggest IT stocks Xero XRO.AX and WiseTech Global WTC.AX climbed 1.7% and 2.2%, respectively.
Financials .AXFJ rose 0.2%, with three of the "Big Four" banks were in the green. Westpac WBC.AX lost 0.4%.
Energy stocks .AXEJ dropped 0.7% after oil prices retreated on easing U.S. supply disruption threats and disappointing Chinese stimulus. O/R
Gold stocks .AXGD slipped 0.5% as bullion prices extended declines. GOL/
In corporate news, Resolute Mining RSG.AX tanked 32.8% to its lowest level in nearly 6 months after its Chief Terence Holohan and two other employees were detained by government officials in Mali.
New Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.7% to 12,686.33 points.
Reporting by Sneha Kumar in Bengaluru; Editing by Sumana Nandy
For more information on DIARIES & DATA: U.S. earnings diary RESF/US Wall Street Week Ahead .N/O Global Economy Week Ahead DATA/ ................................................................ For latest top breaking news across all markets NEWS1
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
