Australia shares fall 1.5 pct resources drop

SYDNEY, July 3 (Reuters) - Australian stocks fell 1.5 percent on Friday, reflecting heavy losses in Europe and the U.S. after a steeper-than-expected slide in U.S. payrolls raised fresh doubts on the health of the global economy.

Losses were led by the resources sector after copper, oil and gold prices all slid, but few sectors escaped Friday's downturn.

"Areas of weakness are not limited to any one particular area. We have most areas of the market marked down with broader weakness and influenced by the movements overnight," said Jamie Spiteri, senior dealer at Shaw Stockbroking.

The S&P/ASX 200 index JO was down 58.1 points at 3,819.2 at 0105 GMT.

New Zealand's benchmark NZX 50 index .NZ50 fell 0.6 percent to 2,752.2.

Also worries over the fast-approaching reporting season added to the negative sentiment.

"There is just a belief that going into the results period over the next month or two, that some of the results may not reach some of the earlier expectations," Spiteri said.

"Some of the improved sentiment that we've experienced in recent months is starting to lose its momentum...there's no absolute shining lights out there, so markets remain cautious," he said.

STOCKS ON THE MOVE

* Global miner BHP Billiton (ASX: BHP.ax) fell 2.8 percent to A$33.33. BHP said it had agreed to sell its Yabulu nickel refinery for an undisclosed amount, resulting in writedowns of $675 million. [ID:nSYD404718]

Its peer, the world's No.2 iron ore miner Rio Tinto (ASX: RIO.ax) , was on trading halt as it completed the Australian portion of its $15.2 billion rights issue.

Smaller miners Fortescue Metals (ASX: FMG.ax) and OZ Minerals OZL fell 3.8 percent to A$3.53 and 1.7 percent to A$0.87 respectively. Copper prices softened in the U.S. and Europe on Thursday.

0104 GMT

* Shares in oil and gas producers also fell after oil prices shed nearly 4 percent to below $67 dollars per barrel on Thursday. Santos (ASX: STO.ax) declined 2.6 percent to A$14.02, Woodside Petroleum (ASX: WPL.ax) fell 1.2 percent to A$41.15 and Roc Oil (ASX: ROC.ax) fell 4.6 percent to A$0.74.

0103 GMT (Reporting by Mette Fraende)

More Quotes and Company Information:BHP BILLITON (ASX: BHP.ax)FORTESCUE METALS GROUP LTD(ASX: FMG.ax)RIO TINTO LIMITED(ASX: RIO.ax)ROC OIL COMPANY LIMITED(ASX: ROC.ax)SANTOS LIMITED(ASX: STO.ax)WOODSIDE PETROLEUM LIMITED(ASX: WPL.ax) ... read original article
Fri 3rd July 2009 - 11:17am