Australian shares shed early gains in cautious trade

SYDNEY: Australian stocks lost early gains to trade down 0.3 percent in late morning trade on Friday as investors trimmed positions ahead of a speech by Federal Reserve Chairman Ben Bernanke where he is expected to give a clearer picture of his plans for the US economy.

The index had earlier risen as much 0.4 percent after the Australian central bank chief said the country was well positioned to weather a further weakening of international conditions, while firm metal prices lifted miners briefly.

"Investors could clear some positions ahead of the crucial US Fed speech," said Juliette Saly, a market analyst at Commonwealth Securities.

The benchmark S&P/ASX 200 index lost 10.94 points to 4,201.9 by 0148 GMT. New Zealand's benchmark NZX 50 index fell 0.33 percent to 3,290.666.

STOCKS ON THE MOVE

Three of the top four bank rose on improved global sentiment for the sector after billionaire investor Warren Buffet invested in Bank of America . No.3 lender Westpac Banking Corp led gains, climbing 0.4 percent.

0145 GMT Australia's Fairfax Media was up 7.7 percent to A$0.84 despite posting a A$401 million ($419 million) loss after writing down the value of some operations and announcing the float of its New Zealand online auction and classifieds business, Trade Me.

0146 GMT

Asia's third-largest listed bourse ASX Ltd climbed 0.3 percent to A$29.36 after naming former gaming executive Elmer Funke Kupper as its new chief executive.

Copyright Reuters, 2011