SYDNEY/WELLINGTON, June 8 (Reuters) - Australian shares snapped a three-day winning streak on Wednesday as investors sold bank stocks amid concerns the central bank may put off cutting rates again this year, while New Zealand shares also sagged.
As expected, the Reserve Bank of Australia (RBA) kept rates on hold on Tuesday, but investors interpreted its commentary as generally upbeat, a sign it may dash hopes of a second cut in 2016. stocks are seen as rival investments to bonds because of their steady dividends, so typically benefit from rate cuts and get sold down when there are signs rates may go up.
After entering positive territory briefly in the morning session, the S&P/ASX 200 index .AXJO reversed course to be down 18.6 points, or 0.4 percent, at 5,353.2 by 0247 GMT. The benchmark rose for the previous three sessions.
"The RBA's apparent lack of interest in the next rate cut, which was gleaned from the commentary, (meant) we saw the Aussie dollar shoot up and we saw the banks drop off," said Argonaut executive director of corporate stockbroking James McGlew.
All the so-called "big four" banks fell. Commonwealth Bank of Australia CBA.AX and National Australia Bank NAB.AX dropped 0.8 percent, while Austrlaia and New Zealand Banking Group ANZ.AX fell 0.9 percent and Westpac Banking Corp WBC.AX was 0.2 percent lower.
The big miners also lost ground, led by BHP Billiton (LON:BLT) BHP.AX and rival Rio Tinto (LON:RIO) RIO.AX , both down 2.2 percent. World No. 4 iron ore producer Fortescue Metals Group FMG.AX gave up 2.7 percent.
Energy stocks fared better after the oil price rose. Origin Energy ORG.AX gained 2.3 percent, Santos STO.AX jumped 2.6 percent ad Woodsold Petroleum added 0.8 percent.
Liquefied Natural Gas LNG.AX was the biggest gainer in the benchmark, up 19 percent. The company told Reuters it was not aware of the reason.
New Zealand's benchmark S&P/NZX 50 index .NZ50 was down 24 points, or 0.3 percent, at 7,013.38, weighed by a 3.6 percent slide in telecoms company Spark SPK.NZ .
Spark fell after broadcaster Sky Network SKT.NZ said it is in discussions with Vodafone Group Plc VOD.L about a possible merger of their New Zealand businesses, potentially putting pressure on Spark.
The news "might have ruffled a few feathers," said Macquarie Equities Investment Advisor Brad Gordon.
In the other direction, dairy exporter A2 Milk ATM.NZ recovered ground, adding 5 percent on bargain hunting.
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