By Swati Pandey
SYDNEY/WELLINGTON, May 26 (Reuters) - Australian shares slipped on Thursday despite a firmer start to the session, shrugging off overnight gains on Wall Street as weakness in financial and consumer staples sectors offset a rally in miners.
The S&P/ASX 200 index .AXJO dipped 9.21 points, or 0.17 percent, to 5,363.3 by 0245 GMT. On Wednesday, the benchmark bounced off a two-week low to end 1.5 percent higher.
The index, which started on a positive note, tested a key resistance level of 5,400 in early trade but soon lost steam. The benchmark has breached that level only once before since August 2015.
"It has been a volatile and a wild ride," OptionsXpress analyst Ben Le Brun said.
"There is no clear catalyst to get us above and beyond the key 5,400 level. Earnings growth has been sadly lacking."
Wesfarmers WES.AX , the owner of Coles supermarket, was among the biggest loser on the index, down about 3 percent with Morgan Stanley (NYSE:MS) expecting the retailer to cut dividends. Australia's No.1 company by sales on Wednesday said it will write down $1.6 billion, while flagging its worst yearly profit in two decades. Woolworths WOW.AX , which has already been struggling to boost sales, was down about 1 percent.
In financials, insurer Suncorp SUN.AX was the biggest loser, down nearly 4 percent after two broker downgrades, traders said. Insurance Australia Group IAG.AX was down 1.6 percent while wealth manager AMP AMP.AX slipped 1.6 percent.
The big banks were mixed with Commonwealth Bank CBA.AX and National Australia Bank NAB.AX down 0.11 and 0.76 percent respectively. ANZ ANZ.AX rose 0.83 percent while Westpac WBC.AX was up 0.4 percent.
Miners were in the black with BHP Billiton (LON:BLT) BHP.AX and Rio Tinto (LON:RIO) RIO.AX up 2.3 percent and 0.6 percent respectively. Fortescue FMG.AX climbed more than 2 percent.
Wall Street rose robustly for a second straight session on Wednesday, helped by higher oil prices and investors becoming more comfortable with the prospect of an interest rate hike as early as next month. .N
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New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.4 percent or 26.77 points to 6,934.81.
New Zealand unveiled its annual budget on Thursday, expecting to post a NZ$719 million ($483 million) surplus in the year to June 2017. = 1.4883 New Zealand dollars)