* RBA commentary catalyst for day's reversal -analyst
* Miners and gold stocks help to limit losses
* NZ central bank announces stimulus package (Updates to close)
By Nikhil Subba
April 7 (Reuters) - Australian shares reversed course to end lower on Tuesday, with financials and healthcare stocks leading the decline after the central bank's cautious commentary on the country's near-term economic fortunes.
The S&P/ASX 200 index .AXJO settled 0.65% down at 5,252.30, having fallen as much as 1.9% after early gains of 2.6%.
While the Reserve Bank of Australia left its cash rate at a record low of 0.25% on Tuesday, as expected, it warned that a very large economic contraction is likely in the June quarter. The central bank also said the unmemployment rate is expected to reach its highest level for many years. RBA is eyeing a sharp contraction in economic activity and a grim outlook for unemployment. This well and truly snuffed the rally that kicked off the day on the back of positive domestic news on COVID-19 and a big rally offshore," said James McGlew, executive director of corporate stockbroking at Argonaut.
Meanwhile, data from Australia and New Zealand Banking Group ANZ.AX showed a 10.3% drop in total job ads in March, erasing the previous month's 1.2% gain, as strict social distancing rules and business closures curbed demand for labour. It was the steepest decline since January 2009, when the global financial crisis was raging. day's worst performer was the healthcare index .AXHJ , which shed 2.2% for its biggest percentage fall since March 31. Industry behemoth CSL CSL.AX declined 2.5%, while Cochlear COH.AX ended 4.3% down.
Pulling back from earlier gains, heavyweight financials .AXFJ closed 1.3% down, with all the Big Four banks finishing about 1% weaker.
Gold stocks .AXGD and miners .AXMM helped to limit losses on the broader benchmark, gaining 3.8% and 0.7%, respectively.
Gold explorer West African Resources WAF.AX finished about 12% up for its highest close since March 26, while lithium explorer Ioneer INR.AX gained 14.5%, its highest close since March 13.
New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.5% to finish the session at 9,809.85.
Tourism holdings THL.NZ gained 9.4% while Heartland Group HGH.NZ advanced about 11%.
The Reserve Bank of New Zealand (RBNZ) on Tuesday said it would buy up to NZ$3 billion ($1.79 billion) of local government debt to ease liquidity strains in the funding market as part of steps to cushion the economy from the coronavirus pandemic.