Australia Stocks: Babcock, James Hardie, Rio, Santos, Woodside

By Shani Raja

Jan. 12 (Bloomberg) -- The S&P/ASX 200 Index fell 65.10, or 1.7 percent, to 3,670.60 at 10:33 a.m. in Sydney, the lowest since Dec. 30. The broader All Ordinaries Index declined 57.50 points, or 1.6 percent, to 3,622.90, while the futures contract expiring in March slipped 1.7 percent to 3,639.

U.S.-linked stocks: James Hardie Industries NV (JHX AU), the biggest seller of home siding in the U.S., slumped 15 cents, or 3.3 percent, to A$4.40, the lowest since Dec. 29. Westfield Group (WDC AU), which owns shopping malls in the U.S., fell 25 cents, or 1.8 percent, to A$13.56, the most since Dec. 19.

U.S. stocks declined on Friday, extending the market’s worst weekly slump since November, on concern an increase in the unemployment rate to an almost 16-year high signals the global recession is worsening. The S&P 500 lost 2.1 percent to 890.35.

Oil companies: Woodside Petroleum Ltd. (WPL AU) lost 75 cents, or 2.1 percent, to A$35.23, the lowest since Dec. 29. Santos Ltd. (STO AU) slipped 30 cents or 2.1 percent, to A$14.17.

Crude oil fell a fourth day after a report showing the U.S. unemployment rate surged in December raised concern demand will drop faster than OPEC cuts output. Crude oil for February delivery declined 2.1 percent to $40.83 a barrel at 2:44 p.m. in New York on Friday, the lowest settlement since Dec. 30.

Babcock & Brown Infrastructure Group (BBI AU), an Australian investment fund, tumbled 1.5 cents, or 12 percent, to 11.5 cents, the lowest since Jan. 5. The company said it may consider a sale of PD Ports Plc, operator of Britain’s third- biggest container dock.

Rio Tinto Group (RIO AU), the world’s third-biggest mining company, slumped A$2.09, or 4.8 percent, to A$41.84, the lowest since Jan. 2. The company was downgraded to “hold” from “buy’ at Deutsche Bank AG.

To contact the reporter on this story: Shani Raja in Sydney at sraja4@bloomberg.net.