Australia shares seen easing after China rate rise

MELBOURNE: Australian shares look set to ease early on Thursday after China's central bank raised interest rates for the third time this year, potentially slowing demand for local exports and sending copper prices lower.

Stock index futures fell 0.2 percent to 4,583, a 22 point discount to the last close of the underlying index. The S&P/ASX 200 index rose 0.2 percent on Thursday.

New Zealand's benchmark NZX 50 index fell 0.2 percent to 3,452.5 in early trade.

On Wall Street, transportation stocks were among the standouts in another flat session for US equities on Wednesday. Broader gains were limited as a downgrade of Portugal's credit rating weighed on banking shares, while a rate hike in China loomed as another concern for investors. However, the Nasdaq rose for its seventh straight day, extending its rally to 6.8 percent.

Australia's government will set a carbon price of A$23 ($24.60)a tonne when it unveils a carbon tax and emissions trading scheme at the weekend, while also slashing the number of businesses forced to pay to pollute, newspaper reports said on Thursday.

Copper closed lower on Wednesday, snapping a six-day rally that saw prices touch their highest since late April, as another rate hike in China and further debt troubles in Europe lessened risk appetite.

Gold producers such as Newcrest Mining may gain after gold prices climbed for a third day on Wednesday, rising to a two-week high.

The local market may be subdued ahead of monthly jobs data at 0130 GMT. Jobs are forecast to have gained 15,000 in June, while unemployment is expected to remain at 4.9 percent.

COPYRIGHT REUTERS, 2011