News: WOR Australia, NZ shares a sea of red as virus fears resurface

• ASX 200 set for worst week since April 24
• Energy stocks slump up to 6%
• New Zealand shares extend decline into fourth day

Australian shares dropped 3% for a second straight session on Friday, tracking losses on Wall Street as investor fears over a possible resurgence of COVID-19 infections were aggravated by the dour outlook from the U.S. Federal Reserve.

Wall Street tumbled overnight in broad-based selloff a day after the Fed warned of a "long road" to recovery in the economy amid a report the U.S. coronavirus death toll may reach 200,000 at some point in September.

The S&P/ASX 200 index (xjo) dropped 3% or 177.5 points to 5,783.1 by 0044 GMT, having closed 3.1% weaker on Thursday. The index is set to fall nearly 2% this week, its biggest weekly drop since April 24.

Energy stocks .AXEJ plunged as much as 6.1% to their lowest level in three weeks and accounted for most of the losses on the benchmark as crude prices fell.

Shares of Oil Search Ltd (OSH) and Worley Ltd (WOR) slumped 8.3% each.

Financial stocks .AXFJ dived 4.6% to their lowest since June 3. The so-called "Big Four" banks lost between 3.5% and 5.4%.

Elsewhere, Australia's mining stocks .AXMM dropped 2.8% as prices of iron ore, copper, aluminium and other industrial metals slumped.

Gold stocks .AXGD , which had rallied in the previous two sessions on safe-haven buying, also edged lower with spot bullion prices trading flat.

Of the index's 200 stocks, just one traded in the green as of 0043 GMT.

New Zealand's benchmark S&P/NZX 50 index (nz50) recouped much of its earlier losses to trade down 2.2% or 250.2 points to 10,904.8. Earlier in the session, the index declined as much as 4.6% in its worst sell-off since the markets crashed in March.

The benchmark extended losses into a fourth straight session even as the country's manufacturing activity showed some signs of recovery in May.