News: CBA Australia shares end lower as Omicron spreads, financials slide

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Australian shares closed nearly 1% lower on Tuesday, led by financials, as an Omicron-led surge in COVID-19 infections in the country hovered near record levels, sending major retailers lower.

The S&P/ASX 200 index (xjo) ended 0.77% lower at 7390.1, extending losses for the second consecutive session. The benchmark fell 0.08% on Monday.

Australia reported 86,000 COVID-19 cases on Tuesday, with two more states due to report later in the day, straining hospitals already stretched thin and hitting company supply chains.

Financial stocks .AXFJ slid as much as 1.7%, with some investors factoring in the possibility of U.S. interest rate hikes at quicker pace. Commonwealth Bank of Australia (CBA) led losses among the Big Four banks with a 1.8% drop.

"We are probably looking at faster and quicker interest rate hikes coming out of the U.S. markets, which will filter to the Australian markets in 2022 and 2023," said Dale Raynes, associate director at CPS Capital.

Australia's two-biggest supermarket chains, Woolworths (WOW) and Coles (COL) , fell more than 2% each, while Wesfarmers (WES) dropped 1.2%.

Retail sales data for November surged past estimates for a second month, but a surge in COVID-19 infections since then threaten to point to weaker showings in December.

Gold miners .AXGD added 1.24%, leading to the index's sharpest gain since December, on the back of a rise in the price of the metal, considered a hedge against rising interest rates.

Resolute Mining (RSG) rose 2.94% and Evolution Mining (EVN) climbed 2.93%.

New Zealand's benchmark S&P/NZX 50 index (nz50) fell 0.48% to 12831.73, hurt by a 3.54% fall in movie software maker Vista Group (VGL) .