Australian shares fall most since mid-August on coronavirus fears; NZ down

Australian shares fell more than 2 per cent on Monday, their biggest since mid-August 2019, as sharp spikes in coronavirus cases outside mainland China deepened worries about a hit to the global economy.

South Korea put the country on high alert while the number of infections jumped to over 700 and deaths rose to seven. In Italy, a third person infected with the flu-like virus died on Sunday, while the number of cases jumped to above 150 from just three before Friday.

The S&P/ASX 200 index fell 2.3 per cent, or 160.70 points, to 6.978.30, its lowest close since Feb. 5.


Energy stocks dropped 4 per cent to their lowest close since Oct. 10 as oil prices slumped nearly 3 per cent.

Woodside Petroleum dropped 6.4 per cent to its lowest close since Oct. 10, while Whitehaven Coal shed 5.8 per cent.

However, Viva Energy Group rose over 1 per cent after the company said it had approved a two-month maintenance turnaround of key units at its Geelong refinery.

Financial stocks dropped 1.7 per cent, with the 'Big Four' banks shedding between 0.9 per cent and 1.5 per cent.

National Australia Bank cut some of its losses to close about 1 per cent lower, after the country's third-largest lender said it would increase the amount it was looking to raise from a notes offer.

Healthcare stocks, which are often seen as defensive ones, marked their worst session since August 2019. Bio-therapeutics firm CSL Ltd declined 3.4 per cent.

Meanwhile, gold stocks provided some respite to the market, with the sectoral sub-index rising 4.2 per cent to its highest close since Oct. 9 on safe-haven demand. Spot gold prices jumped as much as 2 per cent to their highest in more than seven years.

Newcrest Mining gained 5.1 per cent, while St Barbara added 4.9 per cent.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index dropped 1.8 per cent, or 216.22 points, to finish the session at 11,857.12.

Shares of Air New Zealand slumped 5.5 per cent, while those of A2 Milk Co slid 5 per cent.