News: XGD Australia shares soft as investors digest economic data; NZ lower

Australian shares extended the previous session's losses on Thursday as basic materials and energy stocks remained under pressure while investors cautiously navigated a flood of economic data from home and abroad.

The S&P/ASX 200 index (xjo) fell 12.93 points, or 0.24 percent, to 5420 by 0330 GMT, its lowest since mid-July. Australian shares finished at their lowest in more than six weeks on Wednesday.

Australian quarterly capital expenditure figures showed a decline in quarterly spending, pushing markets down further. But investors were reassured when the FY16/17 spending estimate, released soon after, topped the previous forecast. [nIFR2F03gw]

"I guess the markets are trying to work their way around those (capex) numbers at the moment," said Tony Farnham, an economist with Sydney-based Patersons Securities.

Separate data showed retail sales were surprisingly soft in July, largely because of an unusually sharp fall in department store sales.

Official data from China, Australia's biggest trade partner, showed manufacturing sector activity picked up unexpectedly in August. The gains were modest though, pointing to a steadying yet sluggish economy.

Investors are waiting for U.S. payroll data due on Friday which could clarify the chances of a Federal Reserve rate rise in the near future, after upbeat private payrolls signalled that the U.S. economy was regaining strength, fortifying the argument for a rate hike.

Basic materials led the losses with mining giants BHP Billiton Ltd (BHP) and Rio Tinto Ltd (RIO) falling 3.2 percent and 1.5 percent respectively.

The energy index .AXEJ hit its lowest in four weeks on weaker crude oil features, with Woodside Petroleum (WPL) shedding 1.6 percent and Santos Ltd (STO) losing 1.8 percent.

Gold stocks .AXGD touched a two month low. Newcrest Mining Ltd (NCM) and Northern Star Resources (NST) were among the worst performers.

Miners' losses were offset by gains in financial stocks with Westpac Banking Corp (WBC) gaining 0.5 percent and Australia and New Zealand Banking Group (ANZ) up 0.65 percent.

New Zealand's benchmark S&P/NZX 50 index (nz50) was 0.28 percent, or 20.81 points, lower at 7378.02. The benchmark closed flat on Wednesday.

Cyclicals were the biggest drag on the index with Skycity Entertainment Group (SKC) and Fletcher Building Ltd (FBU) among the top losers.

Energy stocks drifted lower with Z Energy Ltd (ZEL) down 0.83 percent and New Zealand Refining Company Ltd (NZR) losing 0.85 percent.