Australian shares edged lower on Monday, ending a six-day wining streak, as BHP Billiton and other miners retreated from recent highs on lower copper prices and concerns over China. Confidence expressed in the Chinese media that Beijing would cap inflation below the full-year target of 4 percent worried some investors.
The threat of Chinese tightening has been a drag on markets on the risk that rising interest rates and tighter lending would sap demand for Australia's raw materials. The local market was already struggling to make fresh headway after a rise in the local currency to near 29-year highs. And ongoing turmoil in oil-produciung nations and struggles to contain radiation at damaged nuclear plants in Japan produced a nervous start to the week.
The underlying S&P/ASX 200 index lost 9 points to end at 4,733.6, according to the latest data. Gains last week had put it back above 4,700 for the first time since Japan was devastated by a magnitude 9.0 earthquake and tsunami. The index is down just under 12 points so far this year. New Zealand's benchmark NZX 50 index rose 0.6 percent to 3,408. BHP Billiton ended down 0.7 percent while Oz Minerals fell 2.5 percent to A$1.535 after gold and copper prices backed away from recent highs.
Comments
Comments are closed for this article.