CANBERRA: Australian shares gave up early gains and tumbled on Tuesday, as banks and resources stocks fell after the yuan resumed its decline against the U.S. dollar, reigniting fears that Beijing may be intent on a deeper devaluation of the currency.
The S&P/ASX 200 index fell 1.2 percent, or 64.56 points, to 5,303.1 at the close of trade. The benchmark edged up 0.2 percent on Monday.
It is on track for its worst monthly performance since May 2012, largely hurt by last week’s surprise devaluation of the yuan, capital raisings by the country’s major banks and on continued weakness in metals and oil prices which is dragging on the resource-driven economy.
Industrial shares were in the black led by gains in Australia’s biggest rail and freight operator Asciano after it agreed a $6.5 billion takeover by Canada’s Brookfield Infrastructure.
