Australia shares end flat as rally pauses ahead of earnings

SYDNEY: Australian shares finished flat on Tuesday, pausing near the 5,000 mark as investors awaited a slew of corporate earnings due this week that will likely determine whether the market continues its bull-run or suffers a correction.

The Commonwealth Bank of Australia, Australia's top lender, rose to an all-time closing high of A$65.52 ahead of half-year results due on Wednesday, with investors keen to see if the bank will increase its dividend.

The S&P/ASX 200 index finished the day 0.5 points lower at 4,959.

"The market seems to be bouncing off high resistance points at these levels," said Ben Taylor, sales trader at CMC Markets.

"To break through from here we need to see sights of clear earnings momentum."

The index has climbed 6 percent since the start of the year and 14 percent since mid-November, helped by receding fears about the potential for European and US debt woes to erupt into crisis.

Rio Tinto Ltd , Wesfarmers Ltd, Mirvac Group, Boral Ltd and CSL Ltd are also due to report their results this week.

"Should these reporting names fail to impress, this could be the trigger for a near-term correction," said Stan Shamu, market strategist at IG Markets.

Global iron ore miners were slightly down, with BHP Billiton Ltd slipping 0.3 percent while Rio Tinto lost 0.6 percent.

Gold miners were softer, after the bullion fell to a one-month low on Monday, hit by technical selling and as investment appetite for the physical metal dropped. Newcrest Mining dropped 2 percent while Regis Resources tumbled 3 percent.

New Zealand's benchmark NZX 50 index also finished flat, slipping 2.4 points, to 4,218.1.

Copyright Reuters, 2013