* Mining stocks down 1%
* RBA decision on reduction of bond buying stalls
* NZ closes flat (Updates to be closed)
Aug 3 (Reuters) – Australian stocks fell on Tuesday as mines and energy stocks dragged down as the country’s central bank sticks to its words to cut stimulus even as heavily populated states remained stranded .
The S & P / ASX 200 index fell 0.2% to close at 7,474.5, slipping from Monday’s closing record high.
In a surprise move, the Reserve Bank of Australia (RBA) said it would continue to cut its bond buying program from September and kept the policy rate at 0.1% for its eighth meeting. consecutive policy.
âThe markets will be a bit disappointed (with the asset reduction decision),â said Henry Jennings, senior analyst at the Marcustoday Financial Newsletter.
âI think we were pressing the hope that they might pull back a bit given the lockdownsâ¦ It’s a bit negative for the banks, it means interest rates are going to be roughly where they are for. long time.”
Bank stocks fell 0.5%, with âbig fourâ lenders trading down 0.2% to 0.9%.
Mining and energy stocks have been hit hard by falling commodity prices, with base metals and oil falling due to coronavirus concerns that could slow demand and hamper the recovery.
Miners were the most lagging behind, losing nearly 1% in their biggest single-day drop in two weeks, with Rio Tinto, BHP Group and Fortescue Metals losing between 0.6% and 1.6%.
The energy sub-index lost around 1.4%, dragged down by Whitehaven Coal Ltd and Beach Energy Ltd.
Tech stocks were the only bright spot, up 4.4%. Afterpay extended its earnings for a second straight session, after the buy-it-now company received a $ 29 billion buyout offer from Square Inc, led by Jack Dorsey, on Monday.
In New Zealand, the benchmark NZX 50 fell 0.02% to 12,700.5, with freight gateway operator Port of Tauranga Ltd losing 2.5%.
Japan’s Nikkei was down 0.5%, while S&P 500 E-minis futures were up 0.3%. (Reporting by Yamini CS in Bengaluru; Editing by Rashmi Aich)