Australian shares shed 0.3 percent on Monday as miners BHP Billion Ltd and Rio Tinto Ltd tracked a fall in copper prices, but a shift into high dividend yielding banks stemmed losses in the wider market. Australia's benchmark S&P/ASX 200 Index fell 18.3 points to 5,418.4, based on the latest available data.
The index had edged up 0.1 percent last week, during which it set all-time highs, for its sixth week of gains. New Zealand shares ended down, with the benchmark NZX-50 Index falling 12.4 points, or 0.3 percent, to 3,818.5. It touched an all-time high of 3,837.9 points in the session.
"This has clearly been a wake-up call for investors relying on the momentum of resource stocks, the volatility of which appears to be increasing," Guy Hutchings, chief investment officer with MFS Investment Management. He added.
Copper fell to $6,900 per tonne after stocks in warehouses rose further, while zinc also slipped after setting a new high. Gold prices fell from two-month highs on profit taking. BHP shed 3.9 percent to A$26.84 and Rio Tinto Ltd lost 3.7 percent to A$77.52.
The two stocks account for about 12 percent of the S&P/ASX 200 index. The top four banks, which account for about 22 percent of the benchmark index, rose as investors chased dividend yields of about 4-5 percent offered by the lenders. "Banks benighted from a shift out of miners, with investors betting on continued strong performance from lenders," said Jamie Spatter, manager of institutional sales with Shaw Stockbreeding.
National Australia Bank Ltd, Australia's top bank, added 1.8 percent to A$39.31 and Commonwealth Bank of Australia Ltd, the second biggest, gained 1.5 percent to A$48.25. J.P. Morgan raised it rating on CBA to "overweight" from "neutral" on Friday. Acquire Bank Ltd, Australia's top listed investment bank, rose 1.1 percent to A$74.58 on the eve of its first-half profit announcements.
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