More than 2100 companies are listed on the Australian Securities Exchange. Source: AFP
AUSTRALIAN stocks have opened weaker, with the big miners leading the broader market lower after commodities prices, particularly gold, were hit hard in offshore trading.
The price of gold reached the lowest level since 2011 on Friday night (AEST), while contract prices for oil and copper also took a tumble.
As a result, gold miners were the worst-performing sector at the open.
Kingsgate Consolidated had slid 12.03 per cent, or 42 cents, to $3.07, Newcrest Mining was off 6.25 per cent, or $1.22, at $18.31 and OceaniaGold was down 5.53 per cent, or 13 cents, at $2.22.
Burrell Stockbroking adviser Jamie Elgar said the recent rally on stock markets - Wall Street posted record highs last week - had dampened demand for gold.
"I think gold started to come off over the last couple of months as people started becoming more confident in equities," Mr Elgar said. "Particularly as the economic data out of China and the US was looking pretty good."
Australia's big two miners were also deep in negative territory - BHP had declined 83 cents, or 2.49 per cent, to $32.52, while Rio had backpedalled $1.38, or 2.43 per cent, to $55.52.
Making news on Monday, shareholder services provider Computershare has paid $US10 million ($A9.57 million) to buy a quarter stake in a US-based company.
Computershare was down 12 cents at $10.01.
Mr Elgar said he expected the market to trade at current levels for the rest of Monday's session, with direction likely to come from Asian trading in the absence of local factors.
Overseas:
Tokyo shares opened down 1.03 per cent after drops in overseas markets and as the world watches whether North Korea marks Kim Il-Sung's birthday with a missile launch.
The Nikkei 225 index at the Tokyo Stock Exchange was down 139.28 points to 13,345.86 at the start on Monday
"Despite sharp gains of late, Japanese shares remain well-supported at the lower 13,000 level, thanks to the strong influx of foreign investor buying," said SMBC Nikko Securities general manager of equities Hiroichi Nishi.
"Thus, any selloffs should be limited," he said.
Eyes were also on North Korea on Monday.
Despite tension-reducing noises from Seoul and Washington, the secretive communist state was expected to mark the birthday of its late founder by launching a missile.
North Korea has a habit of linking high-profile military tests with key dates in its annual calendar. The centenary of Kim's birth last year was preceded by a long-range rocket test that ended in failure.
South Korean intelligence says the North has had two medium-range missiles primed and ready to fire for nearly a week.
On Friday US stocks closed lower after two record-setting days, with sentiment dulled by poor US retail sales figures for March and more prospects of slow economic growth around the world.
The Dow Jones Industrial Average finished virtually flat, down 0.08 at 14,865.06, while the broad-based S&P 500 fell 4.15 points or 0.28 per cent to 1,588.86.
The dollar was changing hands at 98.32 yen in early Asian trade Monday, almost flat from New York Friday afternoon but sharply down from 99.46 yen quoted around the time of Tokyo's stock market close on Friday.
The euro bought 128.90 yen, hardly changed from US levels but down from 130.43 yen in Tokyo Friday, while holding steady at $1.3096.
Earlier:
US and Europeans markets ended Friday marginally weaker but it was the falls in gold, oil and metals that could trigger selling in Australia, which is heavily laden with resources companies.
The June share price index futures contract ended the week pointing to a 19-point fall to 4,997.
CommSec chief economist Craig James said he thought that was optimistic.
Old prices fell by more than $US63 an ounce, or 4.1 per cent, to $US1.501 on Friday while oil slumped 2.4 per cent and base metals by 2-3 per cent.
"We are certainly going to see the resources sector under a degree of pressure," Mr James told AAP.
"It depends whether there is enough support for financials, retailers and the rest of the non-resource sector of market to hold us up."
Despite modest declines in the US and Europe, he pointed to a heavier 1.2 per cent fall on Toronto's sharemarket, which resembles Australia's in terms of being dominated by resources and financial stocks.
Dual-listed BHP Billiton and Rio Tinto also posted decent 2 per cent-plus declines in London.
There may be hope for some afternoon rises on the ASX on Monday if Chinese economic data due out is stronger than expected.
It is releasing important data on economic growth, retail sales, production and investment, which is of interest to Australia as China is its largest trading partner.
Locally, monthly housing finance data is due out on Monday, which is expected to rise by more than one per cent, while lending finance and new car sales figures will also be revealed.
The Reserve Bank board minutes for its recent monthly meeting are out on Tuesday.
The Bank of Queensland will release its first half financial results on Thursday.
The Australian dollar was at 105 US cents over the weekend.
