* Diplomatic tensions with China flare over coal imports
* Gold stocks rise most in two weeks on firm bullion
* Financials lose most in two weeks amid broader weakness
Nov 26 (Reuters) - Australian shares traded steady on
Thursday, as a surprise uptick in U.S. jobless claims amid
coronavirus-driven fresh lockdowns halted a global stock market
rally that was fuelled by optimism over a third potential
vaccine.
Broader sentiment took a hit after data showed U.S. jobless
claims rose unexpectedly for a second consecutive week, implying
that new curbs to contain a resurgence of COVID-19 cases in the
United States could slow down recovery in the labour market.
"Surprising weakness in jobless claims, personal income and
new home sales raised questions about the health of household
budgets, and reversed the recent re-opening inspired trading,"
CMC Markets Chief Market Strategist Michael McCarthy said in a
note.
Back home, Australia's diplomatic friction with its biggest
trading partner China increased after Beijing said some imported
coal did not meet environmental standards, in response to
reports of dozens of shipments of Australian coal stalled in
Chinese ports.
The S&P/ASX 200 index fell 0.1% to 6,677.6 by 0007
GMT, with coal producers Whitehaven Coal and New Hope
Corp dropping up to 4.5% and 3.1%, respectively.
Heavyweight financials, set for their biggest daily loss in
two weeks, were the worst performers on the benchmark, eclipsing
gains in real estate and healthcare stocks.
Commonwealth Bank of Australia lost 1.5%, while
National Australia Bank gave up 1.9%.
On the flip side, gold stocks rose the most in
nearly two weeks after safe-haven bullion held steady amid
broader risk-off sentiment, with Northern Star Resources
adding 2.6% and Saracen Mineral Holdings up
2.4%.
Gold stocks kept the metals and mining sub-index in
the black despite top miners BHP Group and Rio Tinto
losing heavily.
New Zealand's benchmark S&P/NZX 50 index slid 0.2%
to 12,639.38, with local shares of Westpac Banking Corp
and Australia and New Zealand Banking Group both
shedding more than 1.8%.
(Reporting by Arpit Nayak in Bengaluru, Editing by Sherry
Jacob-Phillips)