SYDNEY: Australian shares ended lower on Thursday, after the country's unemployment rate hit a 22-year peak and rising coronavirus cases in some states raised a likelihood of harsher curbs, reminding investors of the impending economic pain.
The S&P/ASX 200 index fell 0.7% to 6010.90 at the close of trade. The benchmark rose 1.9% on Wednesday.
Australia's unemployment rate shot up to 7.4% in June, from 7.1% in May, and the highest since November 1998, according to figures from the Australian Bureau of Statistics, as workers re-entering the workforce were unable to find full-time jobs.
Gold stocks fell 1.6% as bullion prices slipped. Dacian Gold Ltd, closed down 6.1%, while Emerald Resources NL fell 4.9%. Gold fell 0.15% to $1,807.20.
The broader metals and mining index fell 0.8% with heavyweights BHP Group and Rio Tinto both falling around 1%.
Healthcare stocks fell 1.5% lower, weighed by industry behemoth CSL's 2% skid.
Energy stocks fell 0.9?% as oil prices slipped. Santos fell 2.3%, while Viva Energy Group Ltd shed 2.3%.
In New Zealand, the S&P/NZX 50 index fell 0.9% to 11,505.06.
Top losers on the benchmark were Pushpay Holdings down 3.9% and A2 Milk Co down 4.5%.
"The nationwide (employment) recovery is likely to be slower, as consumer and business confidence is undermined, demand is more fragile and businesses more cautious about hiring," Catherine Birch, a senior economist at ANZ, said in a note. "Melbourne workers will feel the worst of it, regional Victoria will also be affected."
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