Aussie shares end flat as miners offset healthcare stocks, Trump comments hit pharma stocks

By Shivangi Lahiri

May 12 (Reuters) - Australian shares ended largely flat on Monday as gains in heavyweight miners offset losses in healthcare stocks after U.S. President Donald Trump said he would sign an executive order to cut prescription prices.

The S&P/ASX 200 index .AXJO nudged 0.03% higher to 8,233.5 points. The benchmark hit a two-month high earlier in the session.

Healthcare stocks .AXHJ dropped 1.4% to their lowest since late April after Trump said on Sunday he would sign an executive order to cut prescription prices to the level paid by other high-income countries, an amount he put at 30% to 80% less.

Australian healthcare companies, including CSL Ltd CSL.AX and Mayne Pharma Group MYX.AX, are particularly vulnerable to American pricing pressures, as they get a significant chunk of their revenue from the U.S.

Healthcare firms have faced mounting pressure amid Washington's push toward drug price parity, potentially ending the premium rates Americans pay compared to other markets, said Tim Bingham, portfolio manager at DNR Capital.

Australian healthcare stocks have lost nearly 10% year to date, compared to a 1% rise in the ASX 200.

Biopharmaceutical giant CSL ended 1.7% lower on Monday, while Cochlear COH.AX and Mayne Pharma lost 0.7% and 3.1%, respectively.

Markets are now looking out for details on U.S.-China trade discussions from over the weekend, with Chinese officials saying the sides had reached an "important consensus" and agreed to launch another new economic dialogue forum.

Back in Sydney, miners .AXMM gained 0.9%, tracking higher iron ore prices as U.S.-China trade talks lifted investor sentiment. IRONORE/

BHP BHP.AX, the world's largest listed miner, added 2.3%, while peer Rio Tinto RIO.AX gained 2.1%.

Gold stocks .AXGD fell 3.2% to a near one-week low as signs of progress in U.S.-China trade talks dampened the metal's safe-haven appeal. GOL/

Gold miner Evolution Mining EVN.AX fell 3.7%.

Market attention is now on Australia's unemployment figures due on Thursday.

New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.6% to finish the session at 12,676.75 points.

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