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May 28 (Reuters) - Australian shares closed lower on Monday as mining and oil stocks were pressured by weaker commodity prices while banks fell as the powerful Royal Commission inquiry into financial services resumed its hearing.
The S&P/ASX 200 index .AXJO fell 0.5 percent or 28.8 points to 6004, extending a 0.1 percent loss on Friday.
The mining index .AXMM ended its seventh straight session lower and shed 1.7 percent after metals like aluminium, lead and nickel on the London exchange posted losses. MET/L
Global miners Rio Tinto (LON:RIO) RIO.AX and BHP Billiton (LON:BLT) BHP.AX ended the session 0.1 percent and 2.9 percent lower, respectively.
Iron ore miner Fortescue Metals Group Ltd FMG.AX said its board approved the development of a $1.28 billion mine and rail project in Western Australia to boost the price it gets for its iron ore. stocks .AXEJ lost 3.1 percent for their lowest close in more than a month on supply concerns.
To address potential supply shortfalls, Saudi Arabia, de-facto leader of producer cartel OPEC, as well as top producer Russia said on Friday they were discussing raising oil production by some 1 million barrels a day. and gas producers Woodside Petroleum WPL.AX and Santos Ltd STO.AX led losses and were 3.5 percent and 3.6 percent lower, respectively.
Gold stocks .AXGD also closed lower as U.S. President Donald Trump revived hopes a summit with North Korean leader Kim Jong-un, after unexpectedly cancelling the meeting last week. Newcrest Mining NCM.AX ended 1.3 percent down. GOL/
Banks pulled back with Commonwealth Bank of Australia CBA.AX down the most by 0.4 percent.
Retail conglomerate Wesfarmers WES.AX was one of the biggest drags on the benchmark, falling 0.9 percent, after local media said it was looking to sell its pubs and liquor business just days after it announced the sale of its loss-making British Homebase chain for 1 pound. the trend and topping the index, plumbing products maker Reliance Worldwide Corp RWC.AX soared 26.6 percent and closed at a record-high after it resumed trade following an announcement last week that it would buy UK-based John Guest Holdings Ltd for about $923 million. Investa Office Fund IOF.AX hit a near 10-year high on a $2.3 billion buyout offer from Blackstone (NYSE:BX) Group. BX.N The stock jumped 11.2 percent.
Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 closed up 0.1 percent or 6.8 points.
Telecom and material stocks led the rise with telco Spark New Zealand Ltd SPK.NZ up 2.4 percent and New Zealand's biggest construction firm Fletcher Building Ltd FBU.NZ closing 2 percent higher.