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Aug 28 (Reuters) - Australian shares slipped on Monday, with the financial sector leading broad-based losses after a financial regulator said it would establish an inquiry into Commonwealth Bank of Australia (CBA).
The S&P/ASX 200 index .AXJO dropped 0.6 percent, or 33.961 points at 5,709.9. on Monday, the benchmark was marginally lower on Friday.
The financial index .AXFJ fell 0.9 percent to its lowest in two months as Australia's four biggest banks lost between 0.5 percent and 1.8 percent. CBA CBA.AX slid 1.3 percent.
Sentiment in the sector turned sour after Australian Prudential (LON:PRU) Regulation Authority (APRA) said on Monday it would establish an inquiry into CBA following the bank's alleged breaches of money-laundering and counter-terrorism finance rules. stocks ended lower on the back of weak metal prices, as iron ore and coking coal were on track for their biggest one-day fall in about three months. IRONORE/
Miner Rio Tinto (LON:RIO) Ltd RIO.AX ended 1.2 percent down while BHP BHP.AX shares were 0.8 percent higher on support from oil prices. O/R
Brent futures LCOc1 were pushed up by pipeline blockades in Libya, while gasoline prices hit two-year highs as floods caused by Hurricane Harvey forced refineries across the U.S. Gulf Coast to shut. O/R
Energy stocks ended higher with Santos Ltd STO.AX up 2.2 percent and Woodside Petroleum up 0.5 percent. Transport fuel supplier Caltex Australia Ltd CTX.AX gained 1.7 percent.
New Zealand's benchmark S&P/NZX 50 index .NZ50 fell for a third straight day, shedding 0.4 percent, or 30.94 points to 7,826.87.
The index was pulled down by telecom and consumer staple stocks.
A2 Milk Company Ltd ATM.NZ , down 2.8 percent while communications services firm Chorus Ltd CNU.NZ , off 5.6 percent, were the biggest drags on the index.
Chorus fell after its full-year profit after tax of NZ$113 million ($81.8 million) missed analysts' estimates.