Australian shares fell 0.2 percent on Monday, their fourth loss in five sessions, as softer US home sales added to concerns that the global economic recovery may be losing momentum. Equity markets had got off to a flying start in 2012, but have been wobbling since China lowered its growth forecast for the year to 7.5 percent in mid-March. China is Australia's top trade partner and the likely slowdown is jolting investors.
The benchmark S&P/ASX 200 index dropped 7.6 points to 4,262.80, according to the latest available data. "You get the feeling we are only one slightly negative headline or data point away from a 'fresh excuse to sell'," IG Markets strategist Stan Shamu said, referring to the nervousness in the market.
Shares in Australia's national carrier Qantas bucked the trend, climbing 2 percent to A$1.765 after it moved to expand its Asian business and cut costs by entering into a joint venture with China Eastern Airlines Corp Ltd to set up a Hong Kong-based, low-cost carrier.
Shares in Bank of Queensland were halted after the lender said it expects to post a loss of A$91 million in the first half as bad loans rise. It also announced a A$450 million capital raising to strengthen its balance sheet. Top department store Myer fell 4.8 percent to A$2.17, trading without the rights to its dividend. New Zealand's benchmark NZX 50 index climbed 0.65 percent to 3,471.9.
Comments
Comments are closed for this article.