Australian shares slipped 0.4 percent on Friday, as investors remained wary after US stocks dipped on worries that an interest rate hike could come sooner than expected, though gains in the defensive sector kept the market in check. The S&P/ASX 200 index lost 19.2 points to 5,445.1 at the close of trade after touching a 2-1/2-week high of 5,480.1 earlier in the session. The benchmark climbed 1.2 percent on Thursday, and added 0.5 percent for the week, its best weekly performance since the end of April.
New Zealand's benchmark NZX 50 index added 0.3 percent or 14.1 points to finish the session at 5,144.2. Banks reversed early gains as three of the four big lenders traded ex-dividend. Australia and New Zealand Banking Group slipped 0.4 percent while Westpac Banking Corp and National Australia Bank both declined 0.1 percent.
"Once the market clues onto an imminent rate hike that may be the precursor toward increased volatility and equity market downside," said Tim Radford, global investment manager at Rivkin Securities in a note. "For now, however, market participant complacency and upside in equities will likely continue." Copper climbed to a session high of $6,954 a tonne, the strongest since May 28, while iron ore rose to $95.30 overnight, continuing a recovery from last week's 21-month low.
Among miners, BHP Billiton Ltd was flat while Rio Tinto Ltd added 0.3 percent. Sandfire Resources climbed 1.2 percent. A handful of defensive shares also ticked higher. Top telecommunications provider Telstra Corporation Ltd added 0.6 percent, while blood products maker CSL Ltd rose 0.7 percent. Tatts Group jumped 3 percent to A$3.22, its highest since November 2013 after an Australian court ordered Victoria state to pay the slot machine company A$451 million ($424 million) in compensation, plus interest, after ruling in favour of the firm's claim that it lost earnings when the state moved to liberalise the slot machine industry.
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