WELLINGTON: Financials pulled down Australian shares on Monday as a decision by Bendigo and Adelaide Bank to defer its final dividend brought the sector's payout woes to surface.

The S&P/ASX 200 index settled 0.8% lower at 6,076.4, with financials shedding 1.63% to hit their lowest level since Aug. 10.

Bendigo and Adelaide Bank Ltd fell 6.6% as the mid-sized lender deferred its full-year dividend payment, citing economic uncertainty caused by the Covid-19 pandemic, and posted full-year profit that almost halved from a year earlier.

Among other financial stocks, AMP Ltd lost 4.2%, while the "Big Four" banks finished in negative territory.

Adding to the gloom, Victoria, the country's second-most populous state, reported its biggest Covid-19 daily death toll with 25 fatalities and 282 new infections.

Technology stocks slipped 1.2%, led by a 2.4% drop in Computershare Ltd, while Afterpay Ltd lost 2.7%.

Energy stocks declined 0.8%, with Ampol Ltd shedding 3.6%, while Cooper Energy Ltd lost 1.3%.

In New Zealand, the benchmark S&P/NZX 50 index rose 1.93% to 11,672.95.

Among top gainers, Summerset Group Holdings Ltd climbed 5.43%, while Ryman Healthcare Ltd gained 5.33%.

"At the moment, the financial space is where there's a bit of uncertainty about whether banks will be paying a dividend or not," said James Tao, a market analyst at CommSec.

"That's a big question mark moving forward for banks."

Though the financial regulator lifted a freeze on dividends, it has said the payout should be less than half of their profit this year.