By Cecile Lefort
SYDNEY, Jan 4 (Reuters) - Australian shares fell on the first trading day of 2016 as a sell off in Chinese equities dampened risk sentiment, though gains in energy and healthcare shares capped losses.
The S&P/ASX 200 index .AXJO dipped 0.3 percent or 16.85 points to 5,279.0 by 02:40 GMT, on disappointing factory activity surveys in China.
Earlier in the session, the benchmark had risen 0.2 percent.
But dealers said trading was volatile with many investors still out after the holidays.
The Australian benchmark index fell 2.1 percent in 2015, its first annual loss in four years as slumping iron ore and metal prices hit blue-chip mining stocks, while onerous capital rules hurt the heavyweight banking sector.
Industrial stocks came under pressure with Sydney Airport SYD.AX off 2.2 percent.
The "Big Four" major banks were also in the red with Westpac Banking Corp leading the losses with a 1.3 percent decline. Commonwealth Bank of Australia and ANZ Bank shed nearly 1 percent, while National Australia Bank dropped 0.6 percent.
The energy sector, however, was a clear outperformer after oil futures jumped over 2 percent. Liquefied natural gas LNG.AX leapt 7.5 percent, while WorleyParsons WOR.AX gained 5.6 percent and Santos 4.3 percent.
The healthcare sector was also in good form with cancer treatment developer Sirtex SRX.AX up 2.05 percent. Blood-products maker CSL CSL.AX scaled a record peak, having leapt 26 percent in 2015.
Miners also got a lift with Rio Tinto (L:RIO) RIO.AX up 0.6 percent and BHP Billiton (L:BLT) BHP.AX 0.4 percent higher.
Electronics retailer Dick Smith Holdings Ltd DSH.AX was on trading halt ahead of an expected debt announcement. Its shares plunged 83 percent last year to touch record lows on poor sales.
New Zealand's S&P/NZX 50 index .NZ50 was shut for a public holiday and will re-open on Tuesday. The benchmark leapt 13 percent in 2015, the fourth annual gain. Dairy producer A2 Milk ATM.NZ was among the top outperformers with a 220 percent rise.