Australian shares slipped 0.7 percent on Monday, hurt by concerns about economic growth in China, worries that Greece may not make a debt deadline and unimpressive economic data at home. The S&P/ASX 200 index dropped 41.8 points to 5,735.4 at the close of trade, pulling away from a three-week peak touched on Friday. Losses were across all sectors with shares in mining and industrials among the hardest-hit.
New Zealand financial markets were shut for a public holiday. Part of the weakness came after manufacturing surveys out of China added to fears about a prolonged slowdown in the world's biggest economy. Australia is sensitive to news out of China, its top export market. Also undermining was a breach of major chart support at 5,750. "Last week we climbed back above that level and it looked as if we had real buying commitment," said Michael McCarthy, chief market strategist at CMC Markets.
"Local investors and traders were looking for international support to kick in but it has not arrived and without that support, it looks like there has been some bailing out." Bank shares struggled, with Commonwealth Bank of Australia, Westpac Banking Corp, ANZ Banking Group and National Australia Bank off around 1.5 percent. The heavyweight resources sector came under fire as prices of iron ore, Australia's top export earner, fell following a brief respite. BHP Billiton skid 2.3 percent and Rio Tinto 1.6 percent. Fortescue Metals Group shed 1.2 percent. Also undermining sentiment was persistent concern about Greece as the deadline for a debt deal with Europe nears.
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