Australian shares closed lower for a third consecutive session on Friday as the prospect of strong US jobs data, which could help seal the deal for a Federal Reserve rate rise in the near term, kept investors on tenterhooks. The S&P/ASX 200 index finished 42.76 points, or 0.8 percent, lower at 5372.8. The benchmark, which closed 0.3 percent lower on Thursday, lost about 2.6 percent, or 142.67 points, on the week.
Aged care facilities operator Estia Health Ltd and health food maker Select Harvest were the day's biggest losers, shedding 6 percent and 9 percent respectively. While the healthcare and telecom services sectors dragged the index down this session, basic materials and telecoms were the week's biggest losers.
Financials shed 1.9 percent on the week, with Westpac Banking Corp losing 3.1 percent and Commonwealth Bank of Australia down 3.2 percent. Miners Rio Tinto Ltd and BHP Billiton Ltd lost 2.9 percent and 4.9 percent respectively, on the week. New Zealand's benchmark S&P/NZX 50 index finished flat at 7426.11 points, with gains in staples, basic materials and technology offset by energy and financials.
Westpac Banking Corp lost 2 percent, while fuel retailer Z Energy Ltd shed 1.2 percent The benchmark gained half a percent this week. The market also took cues from overnight moves on Wall Street, where stocks were flat with gains in the tech sector offsetting a disappointing US factory activity report and lower oil prices. Strength in the US labour market has inspired hawkish comments from some Federal Reserve officials of late, with Vice Chair Stanley Fischer and Cleveland Fed President Loretta Mester both hinting at an imminent rate hike.
Employers are expected to have added 180,000 jobs in August, according to a Reuters poll of economists. "Looking at volumes, we are seeing weak trading volumes here and across the Asia Pacific region," said Michael McCarthy, chief market strategist with CMC Markets. "It reflects an uncertainty ahead of a major market event." About 266 million shares changed hands, less than half of the 30-day average. New Zealand's losses in financials and telecom services were balanced out by gains in basic materials, technology and utilities.