Gains in Australian energy and natural resources shares were offset by weakness in financials and discretionary stocks on Tuesday. The S&P/ASX 200 index dipped 0.14 percent, or 7.96 points, to 5,532.0 at the close of trade, but remained near the peak of 5,611.2 it touched earlier this month. It has gained 4.5 percent so far this year, largely due to falling interest rates and migration from low-return bank deposits.
New Zealand's benchmark S&P/NZX 50 index took a hit in the second half of the day, shedding 1.05 percent, or 77.68 points, to finish the session at 7310.67. Losses from Spark New Zealand Ltd and Fletcher Building Ltd pulled the index down. Share in Australian banks, which account for around a third of the benchmark's weighting, have already dropped between 5 percent and 11 percent this year. IG's Nicholson said lower interest rates would further erode the banks' net interest margins and possibly affect their dividends. BHP Billiton gained 0.5 percent, while spin-off South32 bounced 1.2 percent. BHP rival Rio Tinto edged up 0.2 while iron ore producer Fortescue Metals Group added 2.2 percent.