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Financials, tech stocks sink more than 1%
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Gold sub-index jumps more than 5%
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Australia consumer sentiment due on Tuesday
(Updates to close)
By Savyata Mishra
March 13 (Reuters) - Australian shares extended losses
on Monday, led by financials and tech stocks, as investor
focussed on the developments around the collapse of U.S.-based
Silicon Valley Bank (SVB).
The S&P/ASX 200 index finished 0.5% lower at
7,108.80, easing off from a more than two-month low hit during
the session. The benchmark had shed more than 2% on Friday.
In the global markets, sentiment recovered after U.S.
regulators reassured markets that they would protect customer
deposits to prevent contagion from the failure of tech
startup-focused SVB. Australian banking stocks slid 1.4% after earlier
hitting a five-month low, with the "Big Four" lenders losing
between 0.4% and 1.9%.
The country's prudential regulator said it was seeking more
information from Australian banks regarding any impact from the
collapse.
SVB's collapse sparked a global flight to safety, sending
gold prices surging and driving a 4% jump in the Australian gold
index and limiting losses on the broader index. Gold producers Regis Resources , Ramelius Resources and Northern Star Resources were the top
performers on the benchmark.
Miners closed 1.2% higher on strong iron ore prices,
with a 1.5% gain in mining giant BHP group .
Tech stocks fell 1.3%, in line with U.S. peers on
Friday amid risks from the SVB's failure. Several antipodean
tech firms have said they did not have material exposure to SVB.
Australian interest rate expectations will be anchored to
the domestic economic indicators during the week, Steven
Daghlian, an analyst with Commonwealth Bank of Australia said.
"Looking ahead and sentiment in markets and the subsequent
price action will most likely be affected by the U.S. CPI print.
This is key now the marquee known event risk that could really
move markets around," said Chris Weston, head of research at
Pepperstone brokerage.
New Zealand's benchmark S&P/NZX 50 index closed 0.5%
down at 11,672.90.
(Reporting by Savyata Mishra in Bengaluru; Editing by Rashmi
Aich)
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