Australian shares closed lower on Tuesday after the nation's central bank held rates steady as expected, with financials leading losses due to persistent concerns over slowing earnings growth. The S&P/ASX 200 index was down 0.3 percent, or 16 points, at 5413.6. The benchmark rose over 1 percent on Monday. The Reserve Bank of Australia (RBA) earlier in the day held its cash rate steady, a month after cutting to a record low of 1.5 percent as policy makers allowed time for easings in August and May to percolate through the economy.
While the decision was widely expected, there were some hopes the RBA may flag more easings on the cards in the near term. With no clarity on RBA's outlook, the market drifted off, led by losses in financials and healthcare. Coal miner Whitehaven Coal was the biggest gainer on the benchmark, while miners BHP Billiton and Rio Tinto Ltd each added about 1 percent.
Commonwealth Bank of Australia shed 0.8 percent, dragging the financial index, which lost 0.5 percent, down. Banks have been under pressure recently due to slowing earnings growth. New Zealand's benchmark S&P/NZX 50 index gained 0.2 percent, or 11.5 points, to finish the session at 7503.54. Gains in staples and utilities somewhat offset losses in healthcare and cyclicals stocks. Animal care products maker Ebos Group was among the biggest gainers on the benchmark adding 3 percent, while milk products maker A2 Milk was the biggest at 3.2 percent higher.