By Aaron Saldanha
Feb 12 (Reuters) - Australian shares fell 0.6 percent on Monday, incurring broad-based losses as weak oil prices took their toll while markets waited for U.S. January inflation data due on Wednesday, U.S. time.
The indicator is widely watched as a signal of a potential rate hike, with Wednesday's data under especially close scrutiny after rising bond yields roiled global markets last week.
The S&P/ASX 200 index .AXJO fell 0.6 percent or 35 points to 5,803 by 0051 GMT, weighed by financials and energy stocks. The index was set to fall for the second straight session, after ending the previous week 4.6 percent lower.
"It is very volatile situation but it is the safest assumption to assume there is downside risk," said Ric Spooner, chief market strategist at CMC Markets.
"A lot will depend on consumer price data from the United States on Thursday morning, Asia time. This will be a key event for the near team outlook."
Weak oil prices took Australia's energy index .AXEJ down as much as 1.8 percent to touch its lowest since November. Oil prices slid more than 3 percent on Friday as U.S. futures fell below $60 a barrel for the first time since December on renewed concerns about rising crude supplies. O/R
The biggest loser on the energy index was Beach Energy Ltd BPT.AX , which hit its lowest since Dec. 22.
The Australian financial index .AXFJ was also under pressure, trading 0.8 percent lower. Three of the main index's biggest burdens were financial stocks.
Westpac Banking Corp WBC.AX was the benchmark's biggest drag as it fell as much as 1.2 percent and Australia and New Zealand Banking Group Ltd ANZ.AX slipped as much as 1.3 percent and was the second biggest drag.
Similarly, Commonwealth Bank of Australia CBA.AX was down as much as 0.9 percent.
A powerful government-backed inquiry into Australia's finance sector opened on Monday to investigate alleged misconduct among banks, pension funds and insurance providers after a run of scandals. mining, global giant BHP Billiton (LON:BLT) BHP.AX and its rival Rio Tinto (LON:RIO) RIO.AX were trading 1 percent and 0.7 percent higher, respectively.
"If trends do continue, then potential for a stronger U.S. dollar can be a headwind for commodities...but in the worst case, when equities fall fairly quickly because of concerns of inflation, I suspect commodities may not be down as much as equities," added CMC Markets' Spooner.
The metals and mining index .AXMM gained 0.3 percent on Monday after losing 4.5 percent the previous week.
Retailer JB Hi-fi Ltd JBH.AX was the biggest loser on the main index; slumping to its lowest in more than three years after declaring its interim results. JB Hi-fi's comparable sales growth in January was lower than the prior year's. the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 was up 0.1 percent to 8,101.03; on course to finish higher for the first session in five.
Real estate and consumer staples stocks were the biggest contributors to the gains, with a2 Milk Company Ltd ATM.NZ gaining as much as 1.3 percent, nudging up the index.