Wires

Australia shares slip for a second straight day

Share

* S&P/ASX 200 indexfell 7 points to 4,483.5* Lynas Corp Ltd

plunges 15 pct on Malaysia delay

* Iluka down 6.6 pct on revenues

MELBOURNE, Oct 11 (Reuters) - Australian shares recoveredfrom session lows to close 0.2 percent lower on Thursday, paringsteeper losses after data showed a jump in jobs in September andmore people looking for work.

The Australian dollar

hit a one-week high asexpectations for a November rate cut weakened after governmentdata showed employment rose 14,500 in September, compared toforecasts for a slight rise of 3,750.

.

The benchmark S&P/ASX 200 index

fell 7 points to4,483.5, according to the latest data, off a session low of4,460.4.

Shares pulled back from 14-month highs on Wednesday afterthe IMF cut its growth forecast for China, Australia's biggestexport market.

"The analysis from the IMF has been important for thedirection that the market has taken in recent days. Itunderlines just how many issues there are to be dealt with bypolicy makers," said David Land, analyst at CMC Markets.

The jobs data showed Australia's unemployment rose threenotches to 5.4 percent in September as more people looked forwork.

"The best appraisal is that the economy is in a holdingpattern. As such, rate cuts still remain on the agenda, but thesize of job growth in the latest month does make it harder forthe Reserve Bank to justify a rate cut in November," said CraigJames, economist at CommSec.

Earlier this month, the central bank cut Australia's ratesto a three-year low as growth slows in top trading partnerChina.

Local stocks had fallen at the outset after U.S. equitiessank on corporate warnings of slower growth.

BHP Billitonand Rio Tintoboth fell 0.7percent.

Mineral sands miner Iluka Resources

slumped 6.6percent to A$9 after it reported a drop in first quarterrevenue.

Lynas Corp Ltd

plunged 15 percent A$0.73 as itfaced another delay in opening its rare earths plant inMalaysia, raising the prospect the company may need to shore upits funding with a share sale.

Its shares fell to a six-week intraday low of A$0.69.

Seven Group Holdings

rose 3.6 percent ot A$7.28after the competition regulator blocked it bidding for pay-tvstakeholder Consolidated Media Holdings

.

Seven said as a result, it would back News Corp's $2 billionagreed offer. Seven stands to earn about A$500 million from thesale of its stake of around 25 percent in Consolidated.

New Zealand's benchmark NZX 50 index

slipped 0.1percent to 3,883.3.

(Reporting by Miranda Maxwell; Editing by Sanjeev Miglani)

((miranda.maxwell@reuters.com)(Reuters

Messaging:)(miranda.maxwell.reuters.com@reuters.net)(+61-3

9286-1464))

((Multimedia versions of Reuters Top News are now available for:

* 3000 Xtra : visit* BridgeStation: view story .134For more information on Top News, please visit))DIARIES & DATA:IPO diary & dataAsia earnings diaryU.S. earnings diaryEuropean diaryAustralia diaryWall Street Week AheadEurostocks Week Ahead

................................................................

For latest top breaking news across all markets

................................................................

TOP NEWS SUMMARIES ON OTHER SUBJECTS| U.S. Companies| European Companies|| Forex| Global Economy|| Tech.Media,Telecoms| Banking, Financials|| Politics & General| Sports|

................................................................

MAJOR STOCK MARKET REPORTSNew YorkWeekly outlook New YorkPan-EuropeWeekly outlook EuropeLondonWeekly outlook LondonTokyo

................................................................

ASIA STOCK MARKETSPan-Asia......................Bangkok......Karachi........S/east Asia.Bombay.......Kuala Lumpur...Sydney/NZ...China........Seoul..........Taipei......Hong Kong....Singapore......Tokyo........

................................................................

Access to some items may depend on subscription level.................................................................UP-TO-THE-MINUTE HEADLINESCompany resultsEconomic indicatorsMergers & acquisitionsInterest ratesLIVE PRICES & DATAWorld StocksCurrency ratesDow Jones/NASDAQNikkeiFTSE 100DebtHOW TO FIND INFORMATION YOU NEED||||||||||LIVE PRICES & DATA:World StocksCurrency ratesDow Jones/NASDAQNikkeiFTSE 100DebtAustralian dollarLME price overview))

Keywords: MARKETS AUSTRALIA STOCKS/