A drop in energy stocks saw Australian shares finish lower on Wednesday, while a collapse in consumer sentiment reinforced fears of an economic fallout from the coronavirus crisis.
The S&P/ASX 200 index <.AXJO> ended 0.4% lower at 5,466.70, after starting the session in positive territory. The benchmark closed 1.9% firmer on Tuesday.
A survey showed Australian consumer sentiment had crumbled in April to a 30-year low as virus-induced social distancing measures threatened to push the country's economy into its first recession in three decades.
"[The] market opened with glimmers of hope but this was quickly erased ... after the consumer confidence numbers were the worst in the 47-year history of the survey," RBC Capital Markets' head of equities Karen Jorritsma said in a note.
"...this is another level on the confidence shake-out."
The survey comes ahead of what is expected to be bleak unemployment data on Thursday, as listed companies in Australia and New Zealand slash jobs. Analysts expect the rate to shoot above 10% in the next few months.
Adding to the gloom in markets, the International Monetary Fund warned the global economy would this year suffer its steepest downturn since the Great Depression of the 1930s.
Oil prices recovered slightly in Asian trading hours but were not enough to erase overnight heavy losses as fears of oversupply and a deep recession weighed. [O/R]
The slump in oil prices saw the energy index <.AXEJ> dropping 3.1% in their worst day in nearly three weeks.
Woodside Petroleum <WPL.AX> and Santos <STO.AX> fell over 3.5% each.
Miners <.AXMM> also clocked in losses, dipping 0.6% as giants BHP Group <BHP.AX> and Rio Tinto <RIO.AX> fell 0.7% and 1.2%, respectively.
However, Lynas Corp <LYC.AX> climbed 5.2% after the world's largest rare earths producer outside China applied for an exemption for its Malaysian processing plant, while reporting higher output in the third quarter.
Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index <.NZ50> closed up 2.5% or 250.92 points at 10,409.94, as the government prepares to announce further fiscal stimulus this week.
Financials provided the biggest boost, with New Zealand-listed shares of lenders Westpac Banking Corp <WBC.NZ> and Australia and New Zealand Banking Group <ANZ.NZ> clocking gains of 1.7% and 2%, respectively.
(Reporting by Arpit Nayak, Editing by Sherry Jacob-Phillips)
