Australian stocks gave up early gains to close slightly weaker on Tuesday after a cyclone threatening Queensland state hit some insurers, but miners and energy stocks were underpinned by higher commodity prices. The market also held steady after Australia's central bank held interest rates unchanged at 4.75 percent, as expected, and investors stayed on the sidelines ahead of the release of key economic data in the United States.
"Tomorrow's US ADP report will provide the markets with a hint about what Friday's all important non-farm payrolls will deliver. A pick up in the private sector would provide more confirmation of the recovery in the US," CMC Markets sales trader Ben Taylor said. Australian stocks rose in early trade as encouraging signs of economic growth bolstered resource stocks while the big banks bounced off early lows.
It could add to the A$1.6 billion insurers already face in flood damage claims. Suncorp Group, whose home insurance provides automatic cover for floods, slid 3.0 percent, while Insurance Australia Group fell 2.1 percent and QBE Insurance was down 1.5 percent. BHP Billiton rose 0.8 percent after copper prices rallied to a record high, while Woodside Petroleum also gained 0.8 percent after Brent crude prices topped $100 a barrel.
The benchmark S&P/ASX 200 index closed 1.818 points lower at 4,752.1. The index fell 0.4 percent on Monday. New Zealand's benchmark NZX 50 index picked up 9.724 points, or 0.3 percent, to 3,348.464.
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