MELBOURNE: Australian shares eased 0.6 percent on Monday, led lower by a weaker materials sector after commodities prices fell on worries over Chinese economic growth and revived concerns about Spanish sovereign debt.
But dealers said volumes were light and the reaction to Chinese GDP data was overdone, saying the local market would be supported in the medium term by continued Chinese appetite for Australian firms.
The benchmark S&P/ASX 200 index fell 23.9 points to 4,299.4 as of 0346 GMT on thin turnover, with some participants still away for school holidays in some states. The benchmark gained 1 percent last Friday.
New Zealand's benchmark NZX 50 index slipped 9.8 points to 3,477.4.
STOCKS ON THE MOVE
Shares of iron ore miner Flinders Mines slid 19.6 percent to A$0.177 after suitor Russia's Magnitogorsk Iron & Steel Works said it has appealed a court decision that blocked its purchase of Flinders pending a shareholder lawsuit.
Among the big four banks, Australia and New Zealand Banking Corp outperformed its peers after announcing a hike in its mortgage rates independent of the central bank.
ANZ shares jumped 0.5 percent to A$23.09, compared with declines for the other banks including a drop of 0.3 percent for larger rival National Australia Bank.
Gold miners fell heavily after the gold price extended losses in Asian trade, hurt by US dollar strength on worries about Spanish debt yields, with Newcrest losing 2.5 percent to A$28.52.
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