MARKET COMMENT: S&P/ASX 200 Down 0.5% Late; Tracking Asian Region

0504 GMT [Dow Jones] Australia's S&P/ASX 200 is down 0.5% at 5123.8 late Tuesday after hitting an intraday low of 5119.2. The index reversed an early 0.3% rise to a 4 1/2 year high of 5163.5. Resources weigh on the market, with BHP (BHP.AU), Rio Tinto (RIO.AU), Woodside (WPL.AU), Santos (STO.AU), Newcrest (NCM.AU) and Fortescue (FMG.AU) down 0.3%-2.8%. Doubts about China's economic outlook was a factor cited by Goldman Sachs strategists in their move to downgrade Australian resources to Neutral from Overweight. Uncertainty over China also saw most Asian markets reverse early gains, with the Shanghai Composite down 0.8%. The broader Australian market has reacted negatively, albeit on light volume. Recent stars of the consumer discretionary sector, like JB Hi-Fi (JBH.AU), Harvey Norman (HVN.AU) and News Corp (NWS.AU) are down 0.4%-1.2%, while high-yield favorite, Telstra (TLS.AU) is down 1%. "The market is probably a bit tired, and the resources sector can't catch a bid, which is not a great sign," says an institutional trader. ([e-mail])

 
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