May 2 Australian shares fell on Tuesday with
financial stocks pulled lower after Australia and New Zealand
Bank earnings missed expectations and as investors awaited the
central bank's policy decision.
The S&P/ASX 200 index was down 0.6 percent, or
33.623 points, to 5,922.9 at 0259 GMT, snapping its longest
gaining streak since July 2016. The benchmark had gained 0.6
percent in the previous session.
Australia and New Zealand Banking Group fell as
much as 3 percent, its worst day in six months, after its 23
percent rise in first-half cash profit fell short of analysts'
The financial index lost as much as 1.4 percent,
also after seven sessions of gains, with the other "Big 4" banks
losing between 1 percent and 2.5 percent.
ANZ's miss on consensus was disappointing, given the
significant rally banking stocks have enjoyed over the past two
weeks on optimism ahead of the results, said Ric Spooner, chief
market strategist at CMC Markets.
Among other factors, the Reserve Bank of Australia is seen
holding its cash rate at a record low of 1.5 percent in its
monthly policy meeting later in the day.
"We are largely seeing some softening in banks and Donald
Trump's comments on big banks didn't help too much," said Tony
Cunningham from Cunningham Peterson Sharbanee Securities.
U.S. President Trump's comments on plans to break up big
banks as reported by Bloomberg Television on Monday had little
effect on U.S. stocks, which were boosted in their previous
session by gains in Apple and other big tech
Gold stocks were among the biggest losers on the benchmark
index, as the yellow metal dipped overnight before steadying,
dragging the Australian gold index down 1.8 percent.
Newscrest Mining fell 1.1 percent, while Evolution
Mining lost 4.2 percent.
On the gaining side, Woolworth's rose as much as
2.5 percent after reporting a surge in quarterly sales figures,
pulling the consumer non-cyclicals sector up.
New Zealand's benchmark S&P/NZX 50 index was up 0.4
percent, or 29.5 points, at 7,413.89.
Losses in financials due to declines in New Zealand shares
of ANZ Banking Group, of 2.1 percent, were far
outweighed by gains in industrial and utility sectors.
Air New Zealand gained 3.3 percent in its fourth
straight gaining session, while Meridian Energy climbed
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(Reporting by Susan Mathew in Bengaluru; additional reporting
by Rushil Dutta; Editing by Sam Holmes)