Australian Markets Drop 1.7% as Asian Markets Decline

Marcus Jacob
30 Sep, 2013
New York City

Australian markets declined after Asian markets fell as the U.S. faces government shut down and rocky negotiations in finalizing short term budget and lift debt ceiling. Private sector credit growth slowed in August in Australia.

[R]5:30 PM Sydney – Australian markets declined after Asian markets fell as the U.S. faces government shut down and rocky negotiations in finalizing short term budget and lift debt ceiling. Private sector credit growth slowed in August in Australia.[/R]

Australian stocks participated in Asian market selloff as U.S. lawmakers dither on budget negotiations and the government shutdown looms.

Increasingly divided U.S. branches of government has forced President Barack Obama to operate with no annual budget for at least five years and the U.S. government is operating with supplementary budgets.

Market indexes in Japan dropped 2.1% in Shanghai declined 1.5% and in Mumbai fell 1.8%.

European markets also opened sharply lower after Italian government faces another crisis and five ministers in a coalition government resigned forcing prime minister to seek a confidence vote later in the week.

The ASX 200 index closed down 88 points or 1.7% to 5,219. In trading, 649 million shares changed hands worth $3.8 billion.

Private sector credit growth in August slowed to 0.3% from 0.4% increase in July, the Reserve Bank of Australia said today.

Stocks in Review

Tribune Resources Limited gained 1.5% to $2.10 after the gold miner reported annual profit increased 152% to $27.7 million. The company also added its gold inventory increased 28,000 ounce to 112,000 worth $40 million.

OZ Minerals Limited jumped more than 3% after a media report suggested that the company has been approached by Glencore Xstrata for a takeover. The company clarified in a statement that it has not been approached by Glencore.

Funtastic Limited increased 7% after the toy maker reported 34% increase in its annual profit to $13.96 million.

Boart Longyear Limited declined 3% despite the company completing $300 million bond offering to repay loan outstanding under short term credit from banks.