Australian shares in red as Sino-U.S. tensions flare
* ASX down over 1%, led by miners
* Caution prevails before Australian and NZ central bank
* Lynas leads ASX losses on report of Malaysian licence
By Devika Syamnath
August 5 (Reuters) - Australian shares fell more than 1% on
Monday, extending losses into a fourth session, with mining
stocks hit the most after an escalation in Sino-U.S. trade
tensions raised concerns about the global economic growth
Risk markets have suffered since U.S. President Donald Trump
abruptly said last week that the United States would slap 10%
tariffs on $300 billion of Chinese goods, ending a month-long
trade truce and prompting China, Australia's top trading
partner, to warn it would retaliate.
The S&P/ASX 200 index <.AXJO was 1.2%, or 81.1 points, lower
at 6,687.5. It fell 0.3% on Friday.
"Given the pressure and the nervousness towards the end of
last week about (the) growth outlook, ... it is no surprise
seeing cautious trading and pressure on the market ahead of all
the economic events," said Michael McCarthy, chief market
strategist at CMC Markets.
The central banks in Australia and New Zealand review
interest rates this week, and China is expected to issue July
trade and inflation data.
ANZ Research said in a note it no longer expected the
Australian central bank to cut interest rates, though easing in
coming months was likely. A 25-basis-point cut from New Zealand
"is certain," the note said.
Australia's mining stocks fell as much as 2.4%, as
iron ore and copper prices dropped sharply on concerns the
escalation in the U.S.-China trade war will dampen demand.
The world's biggest miner, BHP Group, lost as much
as 3.1% as it fell to its lowest level in nearly two months,
while Rio Tinto hits its weakest level in three months.
Rare earths miner Lynas Corp was set for its worst
session in five weeks on reports of new hurdles to obtaining a
licence permit for its Malaysian plant, its latest in a
long-running tussle with the Southeast Asia country over how to
deal with radioactive waste at the plant.
Oil-and-gas companies also weakened, with Santos Ltd
and Woodside Petroleum giving up 0.5% and 1%,
Oil Search bucked the trend, gaining as much as 4%
after the Papua New Guinea government signalled its backing for
a liquefied natural gas deal with French oil major Total SA
. Oil Search is a partner in the project.
Property stocks such as Stockland Corporation and
WFD Unibail Rodamco NV also climbed, as much as 1.1%
and 2.4%, respectively.
McCarthy attributed this to the defensive nature of these
stocks amid a "clear focus on steady earnings streams."
In New Zealand, the benchmark S&P/NZX 50 index
ticked down 0.6% to 10,800.14 at 0156 GMT.
Dairy products maker A2 Milk Co led losses, giving
up as much as 2.2%.
(Reporting by Devika Syamnath in Bengaluru; Editing by Neil
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