SYDNEY: Australian shares extended losses to as much as 2 percent on Tuesday, after data from China showed the World's second-largest economy expanded at its slowest pace since the second quarter of 2009 as tight monetary policy and softening demand abroad hurt.
China's annual economic growth eased to 9.1 percent in the third quarter from 9.5 percent in the previous quarter, the National Bureau of Statistics said on Tuesday. China is Australia's top trading partner and key buyer of Australian resources.
Shares in global miner Rio Tinto slipped 4.5 percent and Fortescue slumped 9.2 percent, after weaker-than-expected data out of China weighed on commodities. BHP Billiton fell 3.2 percent. Telstra shares bucked the trend, gaining 1.6 percent to A$3.16 after shareholders approved a plan to hand over the company's fixed-line phone network to the Australian government for $11 billion, transforming the nation's dominant phone company into a pure telecoms retailer.
The benchmark S&P/ASX 200 index fell 78.1 points to 4,197.3 at 0251 GMT, giving back Monday's big gains. The index fell to a low of 4,187.30 just after Chinese data.
New Zealand's benchmark NZX 50 index fell 1.5 percent to 3,270.1.
New Zealand's Fletcher Building sharp fall of 6 percent to a 26-month low, which is weighing on the broader NZ market. Stock has lost 20 percent since it gave profit warning last week.
STOCKS ON THE MOVE
Australia's Qantas Airways shares slipped 3.9 percent after announcing it would ground two more aircraft due to industrial action by unions which is expected to continue until Christmas.
Bionic ear maker Cochlear Ltd fell 2.59 percent to A$53.09 after the company said the recall of its Nucleus 5 hearing implant will cost between A$130 million and A$150 million ($132 million to $153 million)
Australia's largest retailer Woolworths fell 0.81 percent to A$24.49, after it announced plans to raise A$500 million ($509 million) in subordinated notes, with the proceeds to be used for general corporate purposes.
Skilled Group shares rose 0.8 percent to A$1.81 after announcing it had entered an agreement for the sale of its Excelior business to Serco Group.
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