Australian shares ended flat on Monday as a rally in financials and materials stocks was offset by losses in other sectors as investors grew cautious ahead of a widely expected US interest rate hike later this week. The S&P/ASX 200 index rose 3.90 points or 0.07 percent to 5,998.30 at the close of trade, failing to track a strong lead from Wall Street where stocks climbed on Friday.
Traders see a 96.2-percent chance of a quarter-point Fed hike, according to Thomson Reuters data. The benchmark gained 0.3 percent on Friday, propelled by banks and oil and gas stocks.
Banks accounted for most of the gains on Monday, with the Australian financials index rising 0.2 percent to its highest since November 29, registering fourth session of consecutive gains. Heavyweight Commonwealth Bank of Australia ticked up 0.5 percent to a near 2-week high, pushing the index up, while Insurance Australia Group Ltd rose 2.2 percent to its highest close since November 22.
Materials stocks followed closely as they benefited from the rise in iron and copper prices. Mining giant BHP climbed 0.1 percent, while its rival Rio Tinto Ltd rose 0.4 percent.
On the other hand, New Zealand's benchmark S&P/NZX 50 index rose 0.5 percent or 42.42 points to finish the session at 8,277.51, a fresh record high. Auckland International Airport Ltd and Fletcher Building Ltd led the upward march of the index as they rose 2.8 percent and 2 percent, respectively.
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