Banks drag Australian shares lower, CBA tumbles nearly 5%
The S&P/ASX 200 index slipped 0.4% to 8,850.10 by 0059 GMT.
The benchmark index rose 0.4% to a record close of 8,880.80 on Tuesday, after the Reserve Bank of Australia reduced interest rates by 25 basis points, as widely anticipated, while signalling further policy easing could be on the cards.
Top lender Commonwealth Bank of Australia declined nearly 5% on Wednesday, hitting its lowest level since mid-May and pulling the banking sub-index 1.8% lower to its weakest point since August 5.
CBA, considered one of the most expensive banks in the world on a price-to-earnings ratio, reported a record annual profit, but analysts said its bottom line was boosted by a lift in trading income which can be volatile.
National Australia Bank and Westpac slipped 1.6% and 1.3%, respectively.
Miners climbed 0.9% after iron ore futures closed higher overnight as steel mills in Chinese production hub Tangshan were ordered to halt operations.
Mining giants BHP, Rio Tinto and Fortescue gained between 1% and 1.3%.
Tech stocks rose 0.8%, tracking gains in their U.S. peers, while gold stocks advanced 0.6% after a U.S. inflation report raised hopes for a Federal Reserve interest rate cut in September.
Among individual stocks, Treasury Wine Estates rose 5.6% and Insurance Australia Group climbed 1.8% on higher annual profits.
AGL Energy was the weakest performer on the benchmark index with a 12.3% drop, after the power producer posted a 21% drop in annual underlying earnings, missing market estimates.
In New Zealand, the benchmark S&P/NZX 50 index rose 0.6% to 12,840.70. (Reporting by Sneha Kumar in Bengaluru; Editing by Subhranshu Sahu)
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First Post
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Air Canada flight attendants announce complete shut down as they strike over pay
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India.com
21 minutes ago
- India.com
S&P Global Upgrades Credit Ratings On 10 Indian Financial Institutions
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Time of India
34 minutes ago
- Time of India
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