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Australia shares slip, weighed by financial, energy sectors; NZ edges up
October 3, 2017 / 5:41 AM / 2 months ago

Australia shares slip, weighed by financial, energy sectors; NZ edges up

(Updates to close)

Oct 3 (Reuters) - Australian shares ended lower on Tuesday with financial stocks the biggest drag as QBE Insurance tumbled after the company said rising disaster claims could hurt earnings and as a decline in the oil price hit energy firms.

The S&P/ASX 200 index fell 0.5 percent, or 27.93 points, to 5,701.40 at the close of trade.

Australia’s biggest insurer QBE Insurance Group closed the day 3.5 percent down after it announced a $600 million earnings hit on its business from hurricanes in the Atlantic and earthquakes in Mexico.

The insurer added that it had increased its allowance for large individual risk and catastrophe claims to $1.75 billion for 2017.

Meanwhile, the Reserve Bank of Australia left its cash rate at 1.5 percent on Tuesday, a widely expected decision given policy makers have signalled a steady outlook for some time to come.

In other sectors, energy stocks were among the worst performers as oil prices declined for a second day amid fresh worries about a global over-supply of crude.

The Australian energy index ended the day nearly 1 percent down. Beach Energy slipped 5.5 percent, Woodside Petroleum fell 1 percent and Origin Energy closed the day 0.8 percent lower.

The gold index closed 0.7 percent down after prices of the yellow metal dropped to a 7-week low.

Gold miners Newcrest Mining slipped 1.3 percent while Northern Star Resources closed down 0.4 percent.

New Zealand’s benchmark S&P/NZX 50 index rose 0.06 percent, or 4.53 points to finish the session at 7,933.42, supported by healthcare and utility stocks.

Arvida Group was the best performer on the index, rising 2.5 percent while Contact Energy rose 1.1 percent.

Reporting by Chandini Monnappa in Bengaluru; Editing by Sam Holmes

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