Australian shares pared gains to finish up 0.2 percent on Tuesday after the central bank decided to leave interest rates unchanged, dashing lingering market hopes for a jolt of stimulus to the economy. The benchmark S&P/ASX 200 index ended up just 7.7 points at 4,337.0, well shy of an earlier high of 4,351.8. The benchmark fell 0.1 percent on Monday after weak building approvals data.
The Reserve Bank said although growth was somewhat lower than estimated, it was prudent to wait for further inflation data before considering a rate cut. Its decision to stand pat on policy had been widely expected. Top department store Myer fell 1.8 percent to A$2.23 and electronics retailer JB Hi-Fi slipped 0.9 percent to A$10.50. Even non-discretionary retail is under pressure, as evidenced by grocery wholesaler Metcash Ltd which slid to a two-week low. New Zealand's benchmark NZX 50 index fell 0.6 percent to 3,473.1.
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