2 Min Read
(Updates to close)
SYDNEY, Jan 30 (Reuters) - Australian shares fell 0.8 percent on Thursday after Wall Street dropped overnight as the U.S. Federal Reserve decided to continue tapering its bond buying program, while a rout in Treasury Wines also dragged on the market.
Shares in Treasury Wine Estates Ltd tumbled 20 percent to a near 2-year low of A$3.64 as the company warned weak demand in China and stiff competition at home will cut deep into earnings this year.
Elsewhere, Fortescue Metals Group lost 1.3 percent. The world's fourth-biggest iron ore producer revised fiscal 2014 shipments to the lower end of guidance at 127 million tonnes, citing weather-related interruptions to operations this month.
The S&P/ASX 200 index shed 40.9 points to 5,188.1. The benchmark rose 1 percent on Wednesday.
Meanwhile, business conditions for China's manufacturers worsened in January as output and new order growth weakened, with the Markit/HSBC final manufacturing for January dipping to 49.5 from December's 50.5, the first deterioration in six months. China is Australia's largest export market.
New Zealand's benchmark NZX 50 index slipped 0.7 percent to finish the session at 4,849.8.
Reporting by Thuy Ong; Editing by Anupama Dwivedi