Australian shares ended flat on Monday as weakness in banks was offset by gains in mining stocks, with global miner Rio Tinto ending at its best level in over a decade.
Sentiment toward miners was helped by comments from Chinese Premier Li Keqiang that boded well for demand for industrial metals from Australia's main export market. Li said China would look to keep value-added tax low for the manufacturing industry to boost the economy.
Mining major Rio Tinto finished 1.8% higher, while rival BHP Group added 1.3%.
The S&P/ASX 200 index closed 4.1 points lower at 6,451.9, its third straight session in the red, though activity was subdued due to market holidays in London and New York.
Telcos were in the spotlight as Vocus Group Ltd received a A$3.27 billion ($2.27 billion) takeover offer from a private equity firm. Shares ended 17% higher at an over 2-year best.
TPG Telecom also rose 4% after taking the anti-trust regulator to court on Friday over its move to block TPG's merger with a local joint venture of Vodafone.
Telecom heavyweight Telstra, whose shares had risen when its competitors' merger was stalled, dropped 2.5%.
Banks on the other hand, lost 0.5%, with the "Big 4" giving up between 0.1% to 0.7%. The financial sub-index has fallen for four straight sessions since Australia's financial regulator on Wednesday warned banks may face stricter external scrutiny and higher capital requirements unless they improved internal oversight.
New Zealand's benchmark S&P/NZX 50 index was 0.7%, or 74.65 points, lower to 10,147.71, dragged by healthcare stocks such as Fisher & Paykel Healthcare Corp, which fell 3.5%.
Air New Zealand Ltd shares erased earlier gains to end 0.4% lower after cutting 2019 earnings expectations. Earlier in the day, the national carrier said it ordered eight Boeing Co
787-10 Dreamliner jets worth $2.7 billion at list prices.
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