Australian stocks close lower

THe Australian stock market has closed lower with miners hit hardest on a day of widespread declines.

The benchmark S&P/ASX200 index ended down 33 points, or 0.75 per cent, at 4,396 points, while the broader All Ordinaries index fell 35.1 points, or 0.78 per cent, to 4,459.4 points.

On the ASX 24, the June share price index futures contract was 36 points lower at 4390 points.

The local market opened about half a per cent lower and remained at those levels until noon before sliding further into the red late in the session.

Gold and energy stocks posted the largest falls, down 3.13 per cent and 2.25 per cent respectively, according to IRESS data.

The materials sector slipped 1.12 per cent.

Falling stocks outnumbered those that rose by almost two to one, as local investors took their cues from a weak night on Wall Street and softer commodities prices.

"It shaped as a tough day for the Australian market right from the outset, given that declines in commodity prices invariably translate into ASX200 weakness," CMC Markets sales trade Tim Waterer said.

"Across the Asian region today traders had no hesitation in erring on the side of caution.

"Defensive-minded trading definitely seemed the order of the day."

BHP fell 22 cents to $36.03, while Rio Tinto was 74 cents lower at $64.91.

Fortescue Metals slid seven cents to $5.53.

Gold miner Newcrest was the worst-performing stock on the S&P/ASX20, dropping 3.82 per cent, or $1.02, to $25.65.

The spot price of gold in Sydney finished at $US1,633.65 per fine ounce, down $US10.81 from Thursday's local close of $US1,644.46 per ounce.

Mr Waterer said if US employment data, due Friday night (AEST), proved weak, even more downward pressure would be placed on commodities prices.

Making news today, Qantas Airways said it would defer aircraft deliveries in a bid to cut $400 million from capital expenditure.

Qantas, which also announced a boost to services and frequencies in the Australian domestic market, fell two cents to $1.605, while rival Virgin Australia was steady at 41 cents.

Westpac, which cut its standard variable home loan rate by 0.37 percentage points and lowered business loans by half a percentage point, was steady at $22.91.

ANZ slipped 20 cents to $23.44, CBA fell six cents to $52.62 and NAB ended six cents weaker at $25.14.

Just four stocks among the S&P/ASX20 finished in positive territory, with the biggest rise posted by Telstra which advanced two cents to $3.61.

IG Markets strategist Stan Shamu said investors would turn to high-yielding stocks as growth concerns emerged in the economy.

"Telstra has been a perfect example of high-yielding stocks prospering in the current conditions," he said.

National turnover was 1.9 billion securities worth $4.1 billion, with 353 stocks up, 631 down and 409 unchanged.