Australian shares closed lower on Thursday as analysts warned that local unemployment rate would likely worsen this month, while dismal economic data from the United States kept investors' risk appetite in check.
U.S. retail sales and factory output sank last month and grim forecasts issued by major Wall Street banks added to worries about the severity of the economic hit from the coronavirus outbreak.
The S&P/ASX 200 index <.AXJO> fell 0.9% to 5,416.30 at the close of trade, in its worst session since April 3.
Australia's unemployment rate rose less than expected in March but the figures reflect the pre-COVID-19 hit and there could be up to 900,000 job losses in April, Citi economist Josh Williamson said in a note.
"March labour force data will be quickly forgotten as the market prepares for a likely shocking April employment result that includes (social distancing) measures and the collapse in activity," Williamson added.
Energy stocks <.AXEJ> settled 1.6% lower as small rebounds in oil prices could not offset steep earlier declines on the back of oversupply concerns. [O/R]
Woodside Petroleum <WPL.AX>, the largest Australian natural gas producer, gave up 1.4% after posting lower first-quarter sales revenue.
Heavyweights miners <.AXMM> and financials <.AXFJ> finished 1.5% and 1.4% lower.
Among mining stocks, industry giants BHP Group <BHP.AX> and Rio Tinto <RIO.AX> clocked losses of 2% and 1.4%, respectively.
All of the "Big Four" Australian banks ended in the red, shedding between 1.3% and 2.3% each.
Meanwhile, casino operator Crown Resorts <CWN.AX> reversed early losses to rise 0.5% after it said it had stood down about 95% of its employees, as services at its Melbourne and Perth resorts are suspended.
In a note to investors, Morgan Stanley warned that the benchmark index would struggle to sustain a longer rally as firms continue to withdraw earnings forecasts and cloud future earnings clarity.
New Zealand's benchmark S&P/NZX 50 index <.NZ50> gained for the third straight session, rising 0.6%, or 63.25 points, to end at 10,473.19.
Milk producer A2 Milk <ATM.NZ> gained 2.1%, while transport and logistics firm Mainfreight <MFT.NZ> jumped 4.6%.
The Reserve Bank of New Zealand governor Adrian Orr said negative interest rates were not off the table to counter the virus' economic damage.
(Reporting by Arpit Nayak; Editing by Rashmi Aich)
