Australian shares at five-week low

Australian shares edged down to a five-week low on Thursday as underlying worries about a slump in iron ore prices and the demand outlook eclipsed encouraging US economic data. After opening slightly higher, the S&P/ASX 200 index quickly lost ground and closed down 9.44 points or 0.2 percent to 5306.8, its lowest since October 17. The benchmark has now fallen for five straight sessions, and is trading at a 0.8 percent discount to levels at the end of 2013.
It has lost 4.4 percent since November 7. New Zealand's benchmark NZX 50 index lost 0.6 percent or 31.14 points to finish the session at 5495.81. Data showing American factory activity in the mid-Atlantic region grew at its fastest in two decades and home resales jumped to their highest did little to take the edge off global growth worries.
"Whilst the US is ticking along, it's not enough, particularly for a market like Australia which is very commodities dependent," said IG Markets strategist Stan Shamu. Investors have been spooked by slowing growth in China, Australia's biggest export market. A tumble in the price of iron ore, the nation's biggest foreign exchange earner, triggered a selloff in miners. "Some of the iron miners have ticked a little bit higher (but) I don't think anyone's really convinced that this is a stabilisation," Shamu added.
The Australian benchmark has now fallen for five straight sessions, and is trading at a 1 percent discount to its last close of 2013. Iron prices stabilized some after falling to five-year lows this week. Global miners BHP Billiton and Rio Tinto added 0.6 percent and 0.9 percent, respectively, while Fortescue Metals jumped 3 percent.
Oil producers also gained after a bounce in oil prices, led by Santos rising 2 percent, but other key sectors underperformed. Among banks, Westpac Banking Corp dropped 0.7 percent and Australia and New Zealand Banking Group slipped 0.3 percent. Struggling surf clothing retailer Billabong jumped 5 percent to A$0.68 on news it had experienced growth in the US for the first time in years.