Then share market has lost ground for a second straight day as investors dumped resource and energy stocks following a drop in iron ore and oil prices.
The benchmark S&P/ASX200 index fell 0.3 per cent on Thursday, with the heavyweight materials index the biggest loser, dropping 2.6 per cent.
Bell Director equities analyst Julia Lee said the local market extended its early morning falls around lunch time after Chinese iron ore futures fell two per cent, following a 2.6 per cent drop overnight to $US85.30 a tonne.
“So materials took another dive,” Ms Lee said, noting that BHP Billiton and South32 were also trading ex-dividend.
The falls in commodity prices also pushed the Australian dollar to its lowest level in almost two months, trading at 75.08 US cents at 1700 AEDT.
Given the fall in base metals, iron ore and gold prices, investors are steering clear of the Aussie, Greg McKenna, chief market strategist at CFD and FX provider AxiTrader, said.
“Throw into that a rising US dollar and a long speculative market and we have a set-up for a reversal for the Aussie.”
The latest Chinese economic data was mixed, with the producer price index sharply higher in February, but inflation weaker than expected, she said.
Rio Tinto dropped $1.25 to $60.14, BHP Billiton fell $1.27 to $23.96 and Fortescue Metals lost 25 cents to $6.25.
Energy stocks, led by Woodside Petroleum and Santos, were also sold off after oil prices tumbled more than five per cent in the wake of a much stronger-than-expected rise in US inventories.
Woodside shed 33 cents to $30.90 and Santos lost 12 cents to $3.54.
A bright spot was the consumer discretionary sector, buoyed by hopes that Tabcorp and Tatts will get the go ahead from the competition watchdog for their merger, due to efforts from the gaming companies to address competition concerns.
Tabcorp rose 12 cents to $4.47 and Tatts gained 10 cents to $4.18.
ON THE ASX:
* The benchmark S&P/ASX200 was down 18.5 points, or 0.32 per cent, at 5,741 points.
* The broader All Ordinaries index was down 19 points, or 0.33 per cent, at 5,780.5 points.
* The March SPI200 futures contract was down three points, or 0.05 per cent, at 5,750 points.
* National turnover was 3.03 billion securities traded, worth $5.45 billion.
CURRENCY UPDATE AT 1700 AEDT:
* 75.08 US cents, from 75.95 US cents on Wednesday
* 85.99 Japanese yen, from 84.40 yen
* 71.28 euro cents, from 71.90
* 61.75 British pence, from 62.24 pence
* 108.91 New Zealand cents, from 109.07 NZ cents
GOLD:
The spot price of gold in Sydney at 1700 AEDT was $US1,205.45 per fine ounce, down $US11.95 from $US1,217.40 on Wednesday.
BOND SNAPSHOT AT 1630 AEDT:
* CGS 5.25 per cent March 2019, 1.905pct, up from 1.876pct
* CGS 4.25pct April 2026, 2.880pct, up from 2.814pct
Sydney Futures Exchange prices:
* March 2017 10-year bond futures contract at 97.037 (implying a yield of 2.963pct), down from 97.105 (2.895pct) Wednesday
* March 2017 3-year bond futures contract at 97.845 (2.155pct), down from 97.88 (2.12pct)
(*Currency closes taken at 1700 AEDT previous local session, bond market closes taken at 1630 AEDT previous local session)
