Australian shares wiped out gains to fall 0.5 percent on Tuesday after the country's central bank surprised the market by holding rates steady, despite uncertainty over global growth, which knocked bank, retail and property stocks. The market had been betting on a 25 basis point cut in rates to 4.0 percent, which would have been the third rate cut by the Reserve Bank of Australia in as many meetings. Instead, the RBA decided not to move, saying growth was on trend.
Top bank NAB was among the biggest losers, falling 4 percent, as it decided to review its UK operations after holding back during asset sales by others in the UK in 2010. The benchmark S&P/ASX 200 index fell 21.8 points to close at 4,2674.2, paring Monday's 1 percent rise. The big miners also fell, with BHP Billiton closing down 0.8 percent ahead of its half-year results on Wednesday and Rio Tinto sliding 1.8 percent. New Zealand's benchmark NZX 50 index ended up 2.9 points at 3,315.1.
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