* Financial shares up 1.4 pct
* BHP Group reports 8 pct drop in H1 profit
* Healthcare index hits over 1-mth closing low (Updates to close)
By Niyati Shetty
Feb 19 (Reuters) - Australian shares closed modestly higher on Tuesday as losses in the mining and healthcare sectors were offset by significant gains in financial stocks as investors turned to the safety of the nation's biggest banks.
The S&P/ASX 200 index .AXJO rose 0.3 percent, or 17.1 points, to 6,106.90 at the close of trade. The benchmark had gained 0.4 percent on Monday.
Financial stocks .AXFJ advanced 1.4 percent, led by the "Big Four" banks, which rose between 1 percent and 2.3 percent.
Australia and New Zealand Banking ANZ.AX rose more than 2 percent after the bank pledged on Tuesday to lend more to investors as it reported the lowest annualised growth rate in mortgage lending in more than two years. have "refocused attention on the big four because that's where the gains are," said Michael McCarthy, chief market strategist at CMC Markets.
Meanwhile, the metals and mining sub-index .AXMM erased early gains to end marginally lower, with iron ore miner Fortescue Metals Group Ltd FMG.AX slipping 0.3 percent.
World's biggest miner BHP Group BHP.AX ended flat as investors awaited the company's results after market hours. The firm posted a 8 percent decline in first-half profit, citing production disruptions and a fall in commodity prices. stocks .AXHJ finished 1.7 percent down, hitting a more than 1-month closing low, with hearing implant firm Cochlear Ltd COH.AX slumping 8 percent after it flagged slower growth in U.S. and Europe. medical firms conduct most of their business in the United States and any concerns of a slowdown in the country would negatively impact the entire sector.
New Zealand's benchmark S&P/NZX 50 index .NZ50 was marginally lower, falling 0.23 percent or 21.18 points to finish the session at 9,224.26.
Dairy product maker a2 Milk Company ATM.NZ skid 2.2 percent, while Auckland International Airport dipped 0.6 percent.