ENM: Australia shares pare losses to 1%, BHP off lows
MELBOURNE: Australian stocks were down 1 per cent on Friday, partially clawing back early losses and bolstered by news the Australian government w
ill spend an extra A$4.7 billion ($3.15 billion) on major projects from 2009.
Prime Minister Kevin Rudd said on Friday the new money includes funds to increase rail capacity from coal mines in the Hunter Valley of New South Wales to the world's largest coal port of Newcastle, doubling the amount of coal transported to market to 200 million tonnes. He said the spending would add 0.25 per cent to 0.5 per cent to annual gross domestic product.
The benchmark S&P/ASX 200 index was down 35.3 points at 3,562.7 at 0235 GMT, after Thursday's 1.2 per cent fall. It had dropped to 3,520.6 earlier in the session as financials, base metal miners and industrial stocks sank on signs economic conditions are worsening in the United States and worldwide.
New Zealand's benchmark NZX 50 index fell 1.2 per cent to 2,693.1. New Zealand retail sales posted their biggest monthly fall in more than four years in October.
Qantas Airways Ltd fell 5.1 per cent to A$2.23 after oil prices rose. The airline also said it has formed a loyalty programme alliance with retailer Woolworths Ltd. that will allow Woolworths customers to earn Qantas Frequent Flyer points.BHP Billiton Ltd was down 1.1 per cent to A$29.87.
The stock had fallen to as low as A$29.30 earlier in the session on concerns over demand and the strength of the global economy. Rio Tinto fell 2.7 per cent to A$38.94.
The miner said it will slow the pace of 2009 exploration work at La Granja, its mammoth copper project in northern Peru, as the company battles falling commodity prices.
Oil stocks rose after crude oil prices rose 10 per cent offshore, with Woodside Petroleum adding 3 per cent to A$33.76 and oil and gas producer Santos Ltd up 0.9 per cent at A$14.90.Gold miners benefited from a rise in the gold price to their highest in almost two months, surpassing platinum prices for the first time in 12 years.
Lihir Gold up 3.4 per cent to A$2.43 and Newcrest Mining up 1.8 per cent at A$27.79. Australia's top four banks all fell, led by Westpac Banking Corp which shed 2.4 per cent to A$16.15.
