Australian shares fell 2.05 percent on Friday to 8-month lows on concerns over growth in the global economy while miners were hit by China's import tariffs on coal. The S&P/ASX 200 index fell 108.4 points, finishing at 5,188.3 points, and its biggest one-day percentage drop since June 2013.
The benchmark jumped 1.1 percent on Thursday and lost 2.44 percent for the week. China, Australia's largest export market and the world's top coal importer, said on Thursday it would impose import tariffs on the commodity to help domestic miners hit by rising costs and plunging prices.
New Zealand's benchmark NZX 50 index lost 0.78 percent or 40.9 points to finish the session at 5,225.14. "News that China plans to increase tariffs on imported coal will affect the competitiveness of Australian producers in an already weak market," said Ric Spooner, chief market analyst at CMC Markets in a note to clients. Spooner said a clear break below the resistance level of 5,208 over the next few sessions would "signal resumption of the September downtrend". It tumbled 5.9 percent in September and has continued its downward trajectory, falling 1.6 percent so far in October. China, Australia's largest export market and the world's top coal importer, will levy import tariffs of between 3 percent and 6 percent on coal, which would hit Australian producers the hardest.
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