SYDNEY: The Australian sharemarket has extended losses into noon, after stronger-than-expected economic figures sparked a rally in the Australian dollar and as financial stocks declined.
At 12.05pm (AEST), the benchmark S&P/ASX200 index was down 47.5 points, or 0.84 per cent, at 5588.5, while the broader All Ordinaries index was down 45 points, or 0.8 per cent, at 5594.9.
In local economic news, the Australian Bureau of Statistics quarterly GDP figures beat expectations, with the economy expanding 0.9 per cent in the three months to March.
The annual rate of growth, which fell from 2.5 per cent to 2.3 per cent, also beat expectations. Growth remains well below the long-term trend rate of around 3.25 per cent.
The Australian dollar rallied in the wake of the data, jumping from US77.68c into the low US78c level in the minutes following the announcement.
Healthcare stocks were the worst performing shares at noon, while financials were also dragging on the bourse.
The mining stocks were the lone bright spot on the market, after the price of iron ore jumped over the $US62 mark overnight, buoyed by strong economic data from China.
Materials were up 0.47 per cent.
