* Aussie shares set to fall for six of the last 7 sessions
* NZ edges lower; business confidence sinks
* Financials extend losses after interim inquiry report
By Nikhil Nainan
Oct 2 (Reuters) - Australian shares slid more than half a percent on Tuesday as financials extended losses following a scathing interim Royal Commission report last week.
The S&P/ASX 200 index .AXJO fell 0.6 percent or 35.6 points to 6,136.70 by 0200 GMT, at a near three-week low. The benchmark closed 0.6 percent lower on Monday.
Financial stocks .AXFJ fell over 1 percent, albeit in light early trade, to the lowest in 3-1/2 months, and comes on the back of Friday's interim findings of a high-profit inquiry into the financial sector which has seen the index slide for five of the last six sessions.
National Australia Bank NAB.AX was the biggest drag among the country's 'Big Four' banks, falling over 1 percent, while Westpac Banking Corp WBC.AX dropped 1 percent.
However, Mathan Somasundaram, a Blue Ocean Equities market portfolio strategist, said the Royal Commission report was having a waning effect after the country's Treasurer called on any new measures taken against the banks to not hurt the economy or lead to tighter lending. instead, he stated that "cost of borrowing is going up globally, and I think nearly 40 pct of our banks' funding comes from overseas."
The Australian central bank is widely expected to stretch its record spell of steady rates when it holds its policy meeting in a few hours' time. costs are going up, margins are shrinking. It's a tough place to make money. So the banks will struggle and there is always going to be regulatory concern hanging over them."
Energy stocks saw support from surging oil prices, which jumped to levels not seen since November 2014 as markets adjust to prospect of tighter supply once the U.S. sanctions against Iran kick in next month. O/R
Origin Energy ORG.AX rose 2.6 percent.
Gold stocks .AXGD slid 1 percent with Cardinal Resources CDV.AX and St Barbara SBM.AX weighing, down 4.4 percent and 1.9 percent.
The mining sub-index .AXMM was slightly lower as the country's key resource market, China, was closed for a week-long holiday.
New Zealand's benchmark S&P/NZX 50 index .NZ50 dipped 0.1 percent or 13.11 points to 9,314.16.
A private think-tank survey showed that New Zealand business confidence sank to a nine-year low in the third quarter as concerns over government policy and labour costs dampened sentiment. heavyweights Air New Zealand AIR.NZ fell 1.3 percent offseting gains by Fletcher Building FBU.NZ , which rose 1.2 percent.
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