Australian shares tumbled to a three-week low on Tuesday, led by bruised banks following admissions of misconduct by the country's biggest lenders in a powerful Royal Commission inquiry into the scandal-hit sector. The S&P/ASX 200 index fell 0.7 percent, or 42.6 points, to 6,041.90 at the close of trade. The benchmark slipped 2.90 points on Monday.
The country's "Big Four" banks have all admitted to misconduct in their submissions at a third round of public hearings that focuses on loans to small businesses. The financial index fell 0.7 percent to its lowest since April 27.
Australia and New Zealand Banking Group Ltd declined 1.6 percent and was the biggest drag on the benchmark, while Westpac Banking Corp slid 0.8 percent to a near four-week low. Material stocks also accumulated losses, weakened by an extended fall in iron ore prices.
BHP, the country's biggest firm by market value, dipped 0.7 percent, while Rio Tinto Ltd dropped 0.5 percent.
Bucking the wider trend, James Hardie Industries PLC climbed 4 percent after reporting a 17 percent rise in annual adjusted net operating profit. New Zealand's benchmark S&P/NZX 50 index fell 2.40 points to finish the session at 8,613.32.