Australian shares fell 0.4 percent on Monday after the biggest Chinese trade deficit in at least a decade underscored concerns that a slowdown in China could hurt the local economy and as strong US jobs data lessened the case for easing by the Federal Reserve.
China's trade balance plunged $31.5 billion into the red in February as imports swamped exports, although some economists have cautioned against reading too much in to the data given underlying volatility caused by the Chinese Lunar New Year holidays. "The export slump underscores concerns about slowing global demand and cooling growth in China," Stan Shamu, strategist at IG Markets said. The benchmark S&P/ASX 200 index fell 15.3 points to 4,196.7, according to latest available data and was poised to put in its fourth daily fall in six sessions. The benchmark rose 1 percent on Friday.
Worries that China's voracious demand for metals and commodities could be tempered in a slowdown helped pushed global miner Rio Tinto 0.7 percent lower to A$63.7. Mid-sized resource stocks were among the worst hit with Coalspur Minerals dropping 2.8 percent.
Recent data showed China's inflation cooled in February, while retail sales and industrial output came in below forecast. Top banks were all lower. Largest lender National Australia Bank led declines with a 0.9 percent drop. New Zealand's benchmark NZX 50 index rose 0.5 percent to 3,452.4 points.
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