North Korea crisis sends investors scurrying

THE Australian share market has closed lower, in line with sentiment across Asian markets, after North Korea’s weekend test of a nuclear bomb unnerved investors and sparked a surge in safe havens such as gold.

The benchmark ASX 200 index shed 22.6 points, or 0.4 per cent, to 5702 points. The broader All Ordinaries index dropped 22.3 points, also 0.4 per cent, to 5763.8.

Investors were weighing the US response to North Korea’s test of a hydrogen bomb and were uncertain as to China’s reaction, Patersons Securities economist Tony Farnham said.

“US President Donald Trump has said there will be more sanctions ... will China get tougher on its mate? People are just unsure which way the dice will roll,” Mr Farnham said.

Domestic economic data for the June quarter did not affect the market but would have consequences for to- morrow’s economic growth figures, he said.

“Inventory numbers missed expectations and they are expected to be a drag on the GDP numbers,” Mr Farnham said.

Among companies, the Commonwealth Bank shed $1.07, or 1.4 per cent, to $74.41 to be the worst of the big four in a lower banking sector. The CBA announced a board reshuffle as the bank dealt with an initial directions hearing on allegations from regulator Austrac that it breached anti-money laundering and terror funding laws.

The miners were mixed with BHP up 0.2 per cent to $27.48, while Rio Tinto fell 0.9 per cent to $67.68 and Fortescue Metals dropped 1.2 per cent to $5.88.

Gold miners gained amid the risk-off mood with Newcrest Mining up 5c to $23.32, Regis Resources up 5c to $4.25 and Evolution Mining adding 4c to $2.50.