Australia stocks slide amid global sell-off as trade war escalates

By Rajasik Mukherjee

April 9 (Reuters) - Australian shares tumbled nearly 2% on Wednesday, losing $34.5 billion in market value as a global sell-off resumed due to the widening trade tensions between the United States and other countries, especially China.

The S&P/ASX 200 index .AXJO ended 1.8% lower at 7,375 points, after a 2.3% jump on Tuesday. It is down nearly 15% from mid-February's all-time high.

Other top Asian stock indexes also sank after President Donald Trump's tariffs, including 104% on China kicked in. A savage selloff in Treasuries sparked fears foreign funds were fleeing U.S. assets. MKTS/GLOB

Investors' main concern is the escalation in the trade war, which will yield no absolute winners but only relative losers, said George Kurian, a portfolio manager at Oracle Investment Management.

Commodity-focussed companies bore the brunt of the sell-off as investors bailed on miners, which are heavily exposed to China, Australia's largest trading partner.

The mining index .AXMM, which has about 20% weightage on the benchmark, sank 3.7%. BHP Group BHP.AX fell 3.7% and Mineral Resources MIN.AX slumped 12.8%.

"Large tariffs on China are heavy negatives for the iron ore miners and this reality is now being reflected in the strong sell-off in iron ore stocks," Kurian said.

Energy stocks .AXEJ declined 4%, tracking oil prices lower. Sector major Woodside WDS.AX lost 3.9%.

Financials .AXFJ shed 0.8%, but a 0.7% rise in top lender Commonwealth Bank of Australia CBA.AX cushioned the fall.

Health stocks .AXHJ slid 3.6%, with biotech giant CSL CSL.AX slipping 5.1%.

New Zealand's benchmark S&P/NZX 50 index .NZ50 shed 0.7% to end at 11,806.55 points, little affected by the central bank's expected rate cut.

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