The S&P/ASX 200 index closed 0.94% lower at 7,511 points after falling as much as 1.2% during the session. The index closed at its lowest levels since August 4.
The growing anxiety over the
variant of COVID-19 infections continues as Sydney expects cases to “rise substantially” despite a prolonged lockdown, raising fears of a second recession.
Investor sentiment was also eclipsed by falling iron ore prices that hurt the local mining stocks.
ASX 300 metals and mining index slumped 1.4% led by Piedmont Lithium Inc, down 8.7%, followed by Lynas Rare Earths Ltd, losing 7.9%.
The top miners fell between 1.3% and 1.8%.
Financial stocks were the biggest drag on the index, losing 1.7%. Magellan Financial Group Ltd, down 10.2%, led losses, followed by Zip Co Ltd, losing 3.78%.
The big four banks dropped between 1% and 3.5%.
Energy stocks slipped 1.3%, with Beach Energy closing 5.1% lower followed by Woodside, slipping 2.1%.
New Zealand’s benchmark S&P/NZX 50 index fell 0.7% at close to 12,635.32 points as investors await the central bank’s monetary policy statement on Wednesday.
“The only potential blot on New Zealand’s now overheating economy would be the arrival, Australian-style, of the delta variant in the community there. It shouldn’t be enough to sway the RBNZ from announcing a 0.25% rate hike tomorrow,” Jeffrey Halley, market analyst at OANDA, wrote in a note.
