SYDNEY/WELLINGTON, Aug 22 (Reuters) - Australian shares edged higher on Monday as investors digested a mixed bag of earnings results and the possibility of a United States rate hike before long, while New Zealand stocks continued their ascent to record highs.
Companies in Australia were showing they could cope with a mining downturn. But recent comments from Federal Reserve policymakers indicating a rate hike could come at a September policy meeting kept investors cautious.
After see-sawing between positive and negative territory, the S&P/ASX 200 index .AXJO was up 5.817 points, or 0.11 percent, at 0234 GMT. The benchmark was 0.1 percent lower last week, the first with annual earnings results.
"Volumes are low so it indicates that the largest players are sitting on their hands until they've had a chance to look across the full company landscape," said Michael McCarthy, chief strategist at CMC Markets.
"The hedges are in place, and now we're waiting for more information."
Iron ore miner Fortescue Metals Group FMG.AX fell 0.9 percent despite tripling annual profit and upping its final dividend. But that was better than bigger rivals BHP Billiton (LON:BLT) BHP.AX and Rio Tinto (LON:RIO) RIO.AX , both down 1 percent.
Steelmaker Bluescope Steel BSL.AX rose 4 percent after doubling its annual profit.
Energy producers also fell after the oil price retreated overnight. Santos STO.AX , which reported its worst annual result in years the previous week, was down nearly 6 percent, while Oil Search OSH.AX fell 2 percent and Origin Energy ORG.AX lost 1.7 percent.
Bank stocks were mostly up, with Westpac Banking Corp WBC.AX adding 0.2 percent, Australia and New Zealand Banking Group ANZ.AX 0.1 percent and National Australia Bank NAB.AX advancing 0.2 percent. Commonwealth Bank of Australia CBA.AX slipped 0.2 percent.
Health insurer NIB Holdings NHF.AX skidded nearly 4 percent after its annual result, while jobs advertiser Seek SEK.AX held steady despite a 4 percent profit fall.
New Zealand's benchmark S&P/NZX 50 index .NZ50 hit record levels for a second straight day, up 15.36 points or 0.2 percent to 7,420.61. Earlier, it hit a record intraday high of 7,443.0.
Heartland Bank HBU.NZ led gains, rising 2.6 percent. Air New Zealand ANZ.NZ , which will report full-year earnings on Friday, was up 1.3 percent.
Dairy company A2 Milk ATM.NZ rose 0.9 percent and Fletcher Building FBU.NZ rose 0.7 percent, as the construction firm continued to rise following its strong full-year results released on Wednesday.
Retirement village operator Summerset SUM.NZ lost 0.9 percent while Sky TV SKT.NZ fell 0.6 percent.
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