Australian shares fell 1.6%, hitting a new 2008 low on Monday after unfavourable U.S. jobs data and a slump in Wall St on Friday added to overall investor concern regarding possible US recession.
The benchmark S&P/ASX 200 index fell 83.6 points or 1.59% to 5,180 while the broader All Ordinaries fell 1.74% or 93.2 points to 5275.70.
The previous 2008 low of 5,186.8 was set on 22 January 2008.
In New Zealand, the benchmark NZX-50 index fell 0.3 percent, or 10.5 points, to 3,547.748 at 3.30pm AEST.
Financial firms and banking stocks remained under pressure, with the main four banks amongst the biggest losers on the ASX. Commonwealth Bank fell 66 cents or 1.68% to $38.69, ANZ lost 21 cents or 1.04% to $20.05, Westpac shed 10 cents to $21.04 and National Australia Bank slid 42 cents to $26.51.
Investment firms Babcock and Brown slumped 16 cents or 1.15% to $13.80, despite announcing it has ‘retired more than $250 million’ of short –term margin loans from existing resources and received commitments for new term finance.
It also reaffirmed its 2008 group net profit forecast of A$750 million.
Its main rival, Macquarie Group, fell 0.9% to $45.85, after rising as much as 2.4 percent in early trade.
Volatility in the commodities impacted on the resources firms.
BHP Billiton, the world’s top miner and Australia’s top oil and gas producer, fell 4.19% to $37.25, while its main rival Rio Tinto fell 5.15% $126.05.
