Reuters: Hot Stocks: Australia shares fall to new 4-1/2 mth low; caution ahead of US, China data

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Australia shares fall to new 4-1/2 mth low; caution ahead of US, China data Jun 6th 2013, 07:02 Thu Jun 6, 2013 3:02am EDT (Adds market performance details, analyst comments) * S&P/ASX 200 index down 54.0 points to 4,781.2 * Sentiment hit by worries over Fed, Japan volatility, China demand * Newcrest Mining slumps to 8-yr low * Discovery Metals plunges 10.8 pct as bidding deadline nears SYDNEY, June 6 (Reuters) - Australian shares fell 1.1 percent to a fresh four-and-a-half month low on Thursday, hit by selling in banks and miners as investors worried about the possibility of the Federal Reserve scaling back stimulus measures. Investors are cautious ahead of key data out of the United States and China in the next few days, said CMC Markets chief market strategist Michael McCarthy. The U.S. non-farm payrolls report is due on Friday, followed by a slew of China economic data for May including trade, inflation, urban investment, industrial output and retail sales over the weekend. "The China data will speak directly to onging trade with Australia, and non-farm payrolls will speak to the global stimulus situation," McCarthy said, noting these data would be watched closely by investors for any clue about the global economy. The S&P/ASX 200 index lost 54.0 points to 4,781.2, according to the latest data. The index extended a 1.3 percent fall on Wednesday to hit its lowest level since mid-January. Australian stocks have also been hit recently by concerns over volatility in Japanese equities and slowing demand from top resources consumer China. Australia posted a trade surplus of A$28 million for April on Thursday, which missed the forecast of A$215 million according to a Reuters poll. Meanwhile, Chinese steel futures fell more than 1 percent to near the year's low on Thursday, as supply continued to outpace demand in the world's top consumer and pointing to more pressure ahead for prices. Global miner BHP Billiton Ltd lost ground and eased 0.1 percent, while rival Rio Tinto Ltd dropped 0.5 percent. Australia's biggest listed gold miner Newcrest Mining Ltd slumped 6.9 percent to an eight-year low of A$13.36, as gold fell on India's move to hike its import duty on the metal for the second time this year. Discovery Metals Ltd plunged 10.8 percent to its lowest since March 2009, as it approached Monday's deadline for receiving any takeover offer. The struggling miner said on May 21 that it was operating in breach of some of its debt covenants. It closed out copper and silver hedges in late May to help shore up its cash position. Major banks were mostly weaker, but pared some losses. The biggest lender Commonwealth Bank of Australia slipped 0.2 percent, while Westpac Banking Corp dropped 1.7 percent. "The price action in the banks was driven by bargain hunters entering the market on hopes of a near-term bounce," said IG markets strategist Stan Shamu in a note. "The yield appeal improves on the back of lower share prices." Defensives were weaker, with blood products maker CSL Ltd dropping 1.2 percent and the country's biggest telecommunications provider Telstra Ltd falling 1.7 percent. Consumer staples Woolworths Ltd and Wesfarmers Ltd fell 0.7 percent and 1.6 percent, respectively. Qantas Airways Ltd bucked the trend and gained 0.7 percent. The airline and its partner China Eastern Airlines Corp Ltd sold a $66 million stake in Jetstar Hong Kong to Shun Tak Holdings Ltd, a move expected to pave the way for an operating license. Fairfax Media Ltd slid 1.7 percent, after it said it would make changes to its media business and expected the restructure to save an additional A$60 million by the end of September. New Zealand's benchmark NZX 50 index bounced back and ended the session almost flat. It added 1.7 points to 4,455.3. (Reporting by Maggie Lu Yueyang; Editing by) Link this Share this Digg this Email Reprints

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