Australian shares fall

Australian stocks snapped a three-day winning run to fall 0.4 percent on Friday as weaker than expected Chinese PMI data and lukewarm Japanese business sentiment indicators weighed on shares. The main share index still notched up its second consecutive weekly rise, climbing 1.8 percent bolstered by its best daily gain so far this year on Thursday.
"There is a limit to the confidence and today we tested it. While there was positive news overnight from Greece, weak data from China put paid to hopes," Ric Spooner, chief market analyst at CMC Markets said. Data out of China, Australia's top trade partner, showed factory sector grew at its slowest pace in 28 months in June as new orders expanded less quickly, with weaker global demand and tight monetary policy at home pinching production.
Shares of rare earths miner Lynas fell 11.6 percent to A$1.75 to a more than three month low after an independent review panel identified 10 technical issues with the firm's plant in Malaysia. After opening slightly higher the benchmark S&P/ASX 200 index fell 16.8 points to 4,591.2, according to latest available data It rose 1.7 percent on Thursday, its best daily gain in seven months, but fell 4.8 percent for the quarter.
Traders said investors still seemed optimistic and the market could go a touch higher over the next two weeks though news on European crisis and US debt level could alter the course. Financial stocks were weaker with No 3 lender Westpac leading the fall dropping 1 percent. Top miners slipped, with BHP Billiton down 0.1 percent at A$43.77, while Rio Tinto fell 0.2 percent to A$82.83 hurt by weak China data.
Insurer and bank Suncorp climbed 0.25 percent to A$8.16 after maintaining underlying insurance margin forecast despite higher reinsurance costs. National carrier Qantas Airways rose 0.5 percent to A$1.85 after a report its budget offshoot JetStar would launch a joint venture with Japan Airlines Corp. Auckland International Airport , New Zealand's main international gateway, rose 1.8 percent to NZ$2.26 after it said it had appointed a new aeronautical manager. New Zealand's benchmark NZX 50 index rose 0.8 percent to 3,475 points.