Australian shares fell 0.5 percent on Tuesday, pulling back from five-year highs as buying momentum paused ahead of the outcome of the US Federal Reserve's policy-setting meeting this week. Global miners BHP Billiton Ltd and Rio Tinto Ltd hobbled the market, falling 0.7 percent and 1.5 percent respectively, as China's iron ore futures dropped for a seventh straight session on a sluggish steel market.
The S&P/ASX 200 index lost 25.9 points to 5,415.5. The benchmark jumped 1 percent on Monday to touch a five-year high at 5,457.3. The pullback was somewhat contained by Australia and New Zealand Banking Group, which ended 1.2 percent higher on the back of a strong earnings report. It hit a record high of A$34.06 during the session. Shares in Warrnambool Cheese and Butter Factory Company Holdings Ltd (WCB) surged 5.3 percent, fuelling expectations of a new take-over bid for the Australian dairy company. New Zealand's benchmark NZX 50 index inched down 0.2 percent to close at 4,852.6. Shares in ANZ, Australia's third largest bank by market value, rallied 2.2 percent to a record high of A$33.97 after it reported an 11 percent climb in full-year cash earnings. It marked the fourth straight year of record profits for ANZ as it benefited from revenue growth, cost cutting and a drop in bad loans. Westpac Banking Corp added 0.7 percent to hover at record highs of A$34.82 while National Australia Bank Ltd also gained 0.7 percent, touching six-year highs. The two are due to report their full year earnings in the coming weeks. Commonwealth Bank of Australia fell 0.9 percent after hitting another record high in the previous session. The broader market was weighed down by global miners BHP Billiton Ltd and Rio Tinto Ltd.