By Rhiannon Hoyle
SYDNEY--Australian shares closed lower, retreating from
Thursday's five-year high as global equity markets weakened and
investors turned their focus to next week's key Federal Reserve
policy meeting.
With no real catalyst Friday to drive prices to fresh highs, the
benchmark S&P/ASX 200 index--which peaked intraday at 5252.1
Thursday--ended Sydney trading down 0.4% at 5219.6. The Shanghai
Composite and Japan's Nikkei also fell.
Market analysts said national holidays in Japan and China next
week likely prompted some investors to lock in profits before the
weekend.
"After having had a stellar run all week, Asian markets are
losing ground heading into the weekend," said IG market strategist
Stan Shamu. "However, with most equity markets still in short-term
uptrends, we would prefer to buy the dips as support levels are
tested."
Mining companies underperformed, with gold stocks in particular
under pressure after a drop in precious metal prices. Gold futures
fell to a four-week low in New York Thursday as upbeat U.S. labor
market data reinforced expectations that the Federal Reserve would
curb its bond-buying effort.
Investors are cautiously positioning themselves for a potential
shift in the Federal Reserve's monetary policy at the Sept. 17-18
policy meeting, which some market participants believe will kick
off a winding down of the Fed's US$85-billion-a-month bond-buying
program.
Newcrest Mining Ltd. (NCM.AU), Australia's largest listed gold
miner, fell 1.7% Friday, while rival Silver Lake Resources Ltd.
(SLR.AU) fell 7.9%.
The country's largest miners, BHP Billiton Ltd. (BHP.AU) and Rio
Tinto PLC (RIO.AU), dropped 1.0% and 1.7% respectively.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
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