Australian shares near three-week low

Australian shares dipped 0.1 percent on Thursday as an unexpectedly weak employment report hit the confidence of investors already cautious over increasing tensions in Ukraine, though gains in resource stocks limited the day's losses. World No 2 miner Rio Tinto Ltd, which was due to report its first-half results later in the day, ended up 0.8 percent.
The S&P/ASX 200 index was down 3 points at 5,509.0 at the close of trade to near 3-week lows. The benchmark slipped 0.1 percent on Wednesday. New Zealand's benchmark NZX 50 index slipped 0.1 percent to finish the session at 5,097.5. Australian employment was unexpectedly feeble in July as the jobless rate jumped to its highest in almost 12 years at 6.4 percent, a disappointing report that could revive speculation about another cut in interest rates.
"In terms of jobs growth, it's been patchy and soft for a while, we've got stagnant hiring," said Ben Jarman, economist at J.P. Morgan. Banks traded lower as investors sold out of the financial sector. The country's top lender by assets National Australia Bank declined 0.6 percent, while top bank by market capitalisation Commonwealth Bank of Australia slipped 0.2 percent.
The benchmark index hit a six-year high of 5,644.2 on July 31, but has slumped nearly 150 points as investors fret that the US Federal Reserve may raise interest rates earlier than expected, and in the face of the conflicts in Ukraine and Gaza. Russia said it will ban all imports of food from the United States and all fruit and vegetables from Europe, the state news agency reported on Wednesday, a sweeping response to Western sanctions imposed over its support for rebels in Ukraine. "Questions are starting to rise around what can be expected after dividends are priced in," Chay Flack, equities dealer at CMC Markets Stockbroking said in a note.
World No 2 miner Rio Tinto Ltd is due to report its first-half results after the close on Thursday. Gold miners also rose after climbing 1.6 percent overnight on safe haven buying and a weak undertone in global equities. Beadell Resources Ltd soared 8.6 percent, while Australia's top miner Newcrest Mining Ltd jumped 3.8 percent. Elsewhere, a survey of Australian construction activity showed the sector expanding at the fastest pace in eight months thanks to strength in homebuilding and a pick-up in the commercial sector.