The main sub-indexes for both the mining and energy sectors closed more than 0.7% lower for the day. New Zealand's benchmark S&P/NZX 50 index fell 0.3% to 10,096.47, with industrials stocks leading the decline. Adding to the miners' woes, China's iron ore benchmark snapped a rally that had led it to record highs, after the Dalian Commodity Exchange announced increases in transaction fees for some futures contracts.
However, while mining heavyweights BHP Group and Rio Tinto closed 0.6% and 0.7% lower, rare earths firms such as Lynas Corporation, Northern Minerals and Peak Resources surged to close between 9% and 20.5% higher. China's Communist Party newspaper warned the United States that the country was ready to use rare earths to strike back in their bitter trade war. China controls 80% of the world's supply of these materials used in everything from headphones to night-vision goggles.
Top players in the oil and gas space such as Santos Ltd and Origin Energy Ltd fell 1.6% and 2.5%, respectively, as world oil prices weakened after trade war concerns outweighed supply shortfalls. Shares of Fletcher and Precinct finished 2.6% and 3% lower, respectively.