* Light trading ahead of RBA policy decision
* Rate-sensitive sectors up
* Gold stocks down as firmer dollar hits prices
By Nikhil Nainan
Oct 1 (Reuters) - Australian shares edged higher on Tuesday ahead of a widely anticipated rate cut by the country's central bank, though some investors doubted it would have much impact on the market.
The S&P/ASX 200 index .AXJO added 11.8 points, or 0.2% to 6,7000 by 0148 GMT. The benchmark closed 0.4% lower on Monday.
The Reserve Bank of Australia's decision is due at 0430 GMT.
With the policy interest already only 1.0%, "easing further at today's already low rates might not work, and could backfire. But is it even necessary?," ING said in a note on Monday.
Damian Rooney, a director of equity sales at Argonaut, said a cut "just gives you a bit of a sugar hit... and with interest rates globally at very low levels, I am concerned about the health of the global economy."
He said it's doubtful there will be "real buying" of shares on the back of a rate cut.
On Tuesday morning, consumer discretionary and real estate stocks helped drive the benchmark higher, with retail conglomerate Wesfarmers Ltd WES.AX climbing 1.3%.
Real estate stocks, Boral Ltd BLD.AX and Adelaide Brighton Ltd ABC.AX rose 1.5% and 1.6%, respectively.
The sector also received a boost by home prices in Australia posting their biggest monthly jump in 2-1/2 years in September, a further sign that the housing market is recovering. largest airline, Qantas Airways QAN.AX , jumped 1.6% amid lower oil prices. O/R
The "Big Four" banks were all slightly lower, down between 0.1% and 0.4%.
Gold stocks .AXGD were among the biggest drags amid a stronger U.S. dollar, which sent prices of the metal lower. GOL/
Newcrest Mining NCM.AX dropped 3.6% to a near three-week low, while Resolute Mining RSG.AX and St Barbara SBM.AX also slumped.
In New Zealand, the benchmark S&P/NZX 50 index .NZ50 was little changed at 10,924.24.
The local listing of Westpac Banking Corp WBC.NZ and Australia and New Zealand Banking Group ANZ.NZ fell 1.2% and 0.8%, respectively.
Earlier in the day, the Reserve Bank of New Zealand said its final decision on a proposal to increase the amount of capital banks must hold will be announced in December. top Australian banks, which are the biggest lenders in New Zealand, have said they would scale back or sell their businesses in the country if the RBNZ pushes ahead with the plans.
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