Australian shares fell 0.4 percent on Tuesday as weak commodity prices and bleak expectations for Chinese metal demand hit miners. The benchmark index again failed to breach a key resistance level around 4,300 points. Australian iron ore miners, key beneficiaries of China's modern-day industrial revolution, on Tuesday signalled demand growth was finally slowing in response to Beijing's moves to cool its economy.
BHP Billiton, the world's biggest miner, said it was seeing signs of "flattening" iron ore demand from China, though for now it was pushing ahead with ambitious plans to expand production. BHP dropped 0.1 percent and Rio Tinto slipped 0.4 percent.
The benchmark S&P/ASX 200 index ended down 15.8 points to 4,275, according to latest available data. The benchmark rose 0.3 percent on Monday. "After opening a touch higher this morning, the local market has given up significant ground. Some of the main factors driving sentiment were the RBA minutes and a speech by the head of BHP Billiton's iron ore division," Stan Shamu, strategist at IG Markets, said.
Australia's central bank judged interest rates were at the right level earlier this month given an improving global outlook, though it saw plenty of room to ease should conditions take a turn for the worse. Extract Resources shares eased 0.1 percent after Rio Tinto accepted China Guangdong Nuclear Power's (CGNPC) offer for its 14 percent stake in Extract, owner of the giant Husab uranium project in Namibia. New Zealand's benchmark NZX 50 index nudged up a point to 3,487.
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