By Hanna Paul
Aug 3 (Reuters) - Australian shares faltered on Thursday, as earnings from Rio Tinto (LON:RIO) and Suncorp fell short of investor expectations while the country's narrower trade surplus also failed to inspire.
The S&P/ASX 200 index .AXJO fell 7.8 points, or 0.1 percent, to 5,736.4 at 0226 GMT. The benchmark edged 0.5 percent lower on Wednesday.
Rio Tinto RIO.AX dipped 2.2 percent after the global miner reported a 152 percent leap in half year underlying earnings but still missed analyst expectations. iron ore prices slipped on concerns the rally fuelled by steel producers replenishing their stocks would not be sustained. IRONORE/
The benchmark of mining stocks .AXMM slipped more than a percent at one point.
"Rio results last night was a slight miss and Suncorp was also a slight miss", said Mathan Somasundaram, market portfolio strategist at Blue Ocean Equities.
"So even though they are paying good dividends, and in Rio's case doing a substantial buyback, the market expected a bit more so in that context, both those sectors are in a bit of a slump," said Mathan Somasundaram, market portfolio strategist at Blue Ocean Equities.
Australia's second-largest insurer by market share Suncorp Group SUN.AX also reported a rise in annual profit, but slightly below expectations. The company's shares plunged as much as 7 percent to a three-month low. insurers including Insurance Australia Group IAG.AX and QBE Insurance Group QBE.AX followed the downward trend, falling as much as 3.3 percent and 2 percent lower.
Meanwhile, National Australia Bank NAB.AX and Commonwealth Bank Of Australia CBA.AX stepped up about 0.3 percent and 0.4 percent.
The country's balance of goods and services in June showed a narrower surplus of A$856 million, down from A$2 billion in May. Australia has been posting monthly trade surpluses helped by strong commodity exports but the export outlook is starting to be clouded by a rising Australian dollar. Zealand's benchmark S&P/NZX 50 index .NZ50 fell 10.06 points, or 0.1 percent, at 0226 GMT to 7,738.25.
The bourse was little changed as gains in information technology stocks were offset by the falling consumer discretionary sector.
Even though consumer discretionary stocks were the biggest drag, specialist outdoor retailer Kathmandu Holdings Ltd KMD.NZ was the best performer in the benchmark, up as much as 2.9 percent, after reporting a rise in annual sales.