Australian shares extended sharp declines on Tuesday and hovered near-four month lows, as concerns over growth outlook for the country's largest trading partner China dented sentiment. The S&P/ASX 200 index fell 1 percent, or 59.2 points, to 6,041.1 at the close of trade, after losing 1.4 percent on Monday.
While changes to economic fortunes in China tend to have major implications to commodity markets, expectations that Beijing would ramp up infrastructure spending to aid the economy provided a modest bounce to the Aussie dollar.
Healthcare stocks slid 4 percent to their lowest since June, as the combination of a strengthening local unit and concerns of Chinese demand weighed.
Index heavyweight CSL, whose second biggest market is China, dropped 4.5 percent to its lowest in nearly four months, while Cochlear Ltd fell 5.2 percent.
Commonwealth Bank of Australia's losses mirrored the sector's, after the number one lender said it would refund fees taken out of dead client accounts and unwind a controversial system of charging customers commissions on financial products.
New Zealand's benchmark S&P/NZX 50 index stretched its run of losses to a seventh straight session, falling 0.8 percent, or 77.12 points to close at 9,069.98. The benchmark is already down 3 percent for the month, but that comes after two straight months of gains. Index heavyweight a2 Milk Company, which makes a majority of its income in China, fell 3.7 percent.
Comments
Comments are closed.