Aussie stocks slip for third session as mining losses outweigh real estate gains

Australian stocks ended marginally lower on Tuesday, falling for a third straight session, as softer commodity prices pressured heavyweight miners, although gains in consumer and real-estate stocks limited the decline.

The benchmark S&P/ASX 200 index fell 0.2% to 8,604.2 points, after dropping as much as 1.6% during the session. The market was shut on Monday for a holiday.

Miners fell 2.5% to their lowest since May 21, tracking softer iron ore prices amid weak steel demand in China.

Sector majors Rio Tinto and BHP shed 1.8% and 1.9%, respectively.

Gold stocks lost 4% to hit their lowest since March 25. Evolution Mining slumped 3.7% and Northern Star Resources fell 3.3%.

Offsetting the declines, consumer staples stocks advanced 1.5%, with top grocers Woolworths and Coles adding between 1% and 3%.

“We no longer expect the RBA (Reserve Bank of Australia) to hike by 25bp in August, and now see the cash rate peaking at the current rate of 4.35% for the cycle,” said Sally Auld, chief economist at NAB.

“The next move in the cash rate is likely to be down, but the timing is uncertain.”

New Zealand stocks hit near two-week low tracking global peers

Swaps imply that the central bank is likely to keep the key cash rate steady at 4.35% at its meeting next week, after three hikes so far this year.

Real estate companies climbed 1.2%, with Charter Hall Retail REIT and Dexus gaining more than 1%.

Financials ended flat with only ANZ in the green out of the “Big Four” banks, while healthcare gained 1.3%.

Energy stocks slipped 0.2%, tracking weaker oil prices after Iran and Israel said that they had halted attacks after an appeal from U.S. President Donald Trump.

Across the Tasman Sea, the New Zealand benchmark S&P/NZX 50 index rose 1.3% to 13,204.08 points, in its best session in three weeks.