Australian shares fell 0.3 percent after the weakest US jobs data in 8 months rekindled concerns about an economic slowdown and sent investors away from risky assets. Foster's Group bucked the trend to rise 2 percent to A$4.52 on continued speculation that Mexico's Grupo Modelo and Molson Coors Brewing Co are exploring a joint bid for Australia's top brewer.
The benchmark S&P/ASX 200 index was down 13.97 points at 4,569.10, according to latest available data, near its November 2010 low considered a key technical support. Traders said the central bank rate decision due on Tuesday also weighed on the minds of investors though most analysts expect the Reserve Bank of Australia to stay put.
"Any indication in Governor (Glenn) Stevens' statement tomorrow that a rate hike is not far away, is likely to be a short term negative for stocks exposed to domestic consumers," Ric Spooner, chief market analyst at CMC Markets, said. Iluka Resources jumped 7.3 percent to A$17. The firm announced a deal with titanium dioxide customers that will boost second-half prices by 70 to 75 per cent.
Mining contractor Macmahon Holdings rose 2.75 percent to A$0.56 after a newspaper said an overseas player may be looking to buy Leighton Holdings' 19 percent stake in Macmahon. Qantas fell 3.7 percent to a near two-year low on fears of industrial action by employees and a downturn in international travel affecting the airline. New Zealand's market is closed for the Queen's Birthday holiday.
Comments
Comments are closed for this article.