Australian shares up

Australian shares gave up early losses to finish 0.51 percent higher on Tuesday helped by solid building approvals data and a better-than-expected balance of payments, while after the central bank left monetary policy unchanged. The Reserve Bank of Australia kept interest rates at record lows for the 12th straight policy meeting on Tuesday and seemed content to stay on the sidelines for a while as the economy adjusts to a waning mining boom.
The S&P/ASX 200 index rose 0.51 percent, its biggest gain in two weeks, to end at 5,658.5 points led by strong gains in financials, resources and energy stocks. New Zealand's benchmark NZX 50 index rose 0.12 percent or 6.37 points to finish the session at 5,221.77. Geopolitical tensions, slowing manufacturing in the euro zone and stagnating factory activity in several key countries weighed on sentiment. The Reserve Bank of Australia's meeting will draw interest with the focus on whether the central bank will retain its commitment to keep interest rates low for a while. The cash rate is expected to stay steady at 2.5 percent.
"Our market lacks a bit of guidance because the US market wasn't open but people are concerned about the geopolitical issues out there," said Angus Gluskie, portfolio manager at White Funds Management, which manages more than $350 million. Weak iron ore prices, down almost 35 percent this year, hit stocks in the resource sector. BHP Billiton Ltd lost 0.3 percent and Rio Tinto Ltd 0.8 percent.
Financials were also weak. The major four banks - National Australia Bank, Commonwealth Bank of Australia, Westpac Banking Corp and Australia and New Zealand Banking Group Ltd - were all down. Origin Energy Ltd gained 2.6 percent while Australia's top oil and gas producer Woodside Petroleum Ltd added 0.6 percent. AGL Energy was among the top losers in the index, dropping 3.2 percent.
Telecommunications companies Telstra Corporation Ltd and TPG Telecom were both up about 1 percent. New Zealand stocks were marginally lower. Of the leading stocks, Fletcher Building Ltd and telephone company Spark Ltd each shed a few cents offsetting a 1.3 percent lift for casino operator Sky City Entertainment. which hit a five-week high. Clothing retailer Hallenstein Glasson Ltd continued to rebound from last week's five-month low, gaining a further 3.2 percent, albeit on low volume.