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MELBOURNE: Australian shares closed down 1.2 percent on Thursday, reversing half of Wednesday's rally on worries about Europe's lingering debt crisis and growing gloom among Australia's retailers posting poor Christmas sales.
The benchmark S&P/ASX 200 index gave up 48.7 points to close at 4,090.8. The benchmark rose 2.1 percent on Wednesday.
New Zealand's benchmark NZX 50 index fell 0.5 percent, closing at 3,207.2.
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