By Aparajita Saxena
April 28 (Reuters) - Australian markets were dragged lower by miners on Friday, after dips in overnight commodity prices pared previous sessions' gains while New Zealand stocks surged to a seven-month high, led by industrial and utility shares.
The S&P/ASX 200 index .AXJO fell 24.841 points or 0.41 percent to 5,897 by 0254 GMT. The metals index .AXMM fell to its lowest in four months, pressured by falls among giants such as BHP Billiton (LON:BLT) BHP.AX , Rio Tinto (LON:RIO) RIO.AX and Newcrest Mining NCM.AX .
Financials rose marginally, propped up mostly by insurance companies. Three of the "Big Four" banking stocks fell ahead of earnings next week.
"For banks, I think dividends will be a big focus next week. Cash earnings next week are likely to be constrained, and dividends are expected to be steady," said Ben Le Brun, market analyst at Optionsxpress.
He expects the net interest margins to come under pressure since the Reserve Bank of Australia interest rates are quite low. He said he is also watching bad and doubtful debts cycle closely, although cash earnings will also be an important focal point.
Australia and New Zealand Banking Corp ANZ.AX and National Australia Bank NAB.AX report results next week.
Among commodities stocks, the gold index .AXGD fell 3.34 percent, with Northern Star Resources NST.AX , Alacer Gold Corp AQG.AX , Evolution Mining EVN.AX losing the most.
Oil majors Woodside Petroleum WPL.AX , Beach Energy Ltd BPT.AX and Oil Search OSH.AX fell after prices took off towards a second straight weekly loss. O/R
Qantas Airways QAN.AX fell nearly 1 percent after it said Thursday it would axe its Melbourne-Dubai-London flights operated in partnership with Emirates. Rival Virgin Australia Holdings VAH.AX was flat.
In overnight commodities trade, copper and zinc fell on Thursday after concerns about demand from China and tax cuts in the U.S. rattled nerves. bleeding was contained by higher China iron prices - the most traded iron-ore on the Dalian Commodity Exchange DCIOcv1 rose on Friday, in line with China steel prices which rose for a third straight session overnight.
New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.235 percent or 17.3 points to 7,371.91, breaching the six-month high it had recorded over the last two sessions, to hit its highest since September 12.
Gains were led by transport and industrial stocks - Auckland International Airport AIA.NZ recorded its biggest percentage gain in six weeks, while supply chain logistics company Mainfreight Ltd MFT.NZ rose 1.2 percent.
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