Markets

Australia shares drop 1.4pc as Europe rattles investors

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Miners led losses with top two BHP Billiton and Rio Tinto both falling over 2 percent.

Spain's borrowing costs jumped to levels seen as unsustainable on Thursday, while Greek police clashed with anti-austerity protesters and Italy announced sweeping reforms to deal with the long-running crisis.

Telstra, Australia's largest telecoms provider, fared better, dropping 0.6 percent. It told investors it was on track to meet guidance of low single-digit growth in total revenue and earnings.

The benchmark S&P/ASX 200 index fell 60.73 points to 4,197.50 at 2341 GMT.

New Zealand's benchmark NZX 50 index slipped 0.5 percent to 3,261.93 points.

Copyright Reuters, 2011