Australia's share market has trimmed some early losses for a flat finish despite a drop in mining and tech stocks, as financials lifted ahead of US bank earnings later in the week.
The S&P/ASX200 rose 0.7 of a point on Tuesday, up 0.01 per cent, to 8783.9, as the broader All Ordinaries lost 15.5 points, or 0.17 per cent, to 8921.5.
The local market's relative underexposure to advanced technology stocks helped it outperform most of its regional counterparts, with South Korea's KOSPI tumbling more than six per cent and the NIKKEI down 1.2 per cent by 4pm AEDT.
Australia's tech sector tumbled 4.4 per cent in a broad-based dump.
Despite copper prices holding relatively steady, the repricing of AI optimism appeared to hit mega miners BHP and Rio Tinto, which both tumbled along with lithium and rare earths producers such as Liontown, PLS and Lynas.
Gold producers were also in the red, as elevated bond yields and a stronger greenback kept the precious metal below $US4200 ($A6033) an ounce.
Financials largely saved the session, the heavyweight sector up 1.4 per cent and trading at five-week highs as CommBank led the big four higher to trade at $154.50.
It was the second strong session in a row for the major banks, buoyed by optimism for incoming US bank earnings due overnight for Goldman and Sachs, JP Morgan, and Citigroup.
The Reserve Bank released its September meeting minutes, which were widely read as more hawkish than the press conference accompanying its decision to hike the official cash rate to 4.6 per cent, with economists warning of further increases ahead.
"We continue to expect that a rate hike in November is more likely than not, although the incoming data and global events will play a large part in shaping the MPB’s (Monetary Policy Board) views between now and November," ANZ head of Australian economist Adam Boyton said.
Energy stocks performed well despite the recent oil price rally running out of steam, as traders mulled the US-Russia diesel supply deal and ongoing supply disruptions in the Middle East.
Woodside, Santos, Viva and Ampol gained up to 1.9 per cent, while coal producers were mixed and uranium stocks came under pressure from the cooling AI narrative.
Consumer-facing stocks charged higher after a weak session on Monday, with staples up 1.3 per cent and cyclicals advancing 0.9 per cent, while utilities also performed well.
In company news, Telstra shares fell for a third session to $4.64 as its leadership fronted shareholders at its annual meeting, with CommBank and Origin to follow on Wednesday.
The Australian dollar is buying 69.64 US cents, down from 69.77 US cents on Monday at 5pm.
ON THE ASX:
* The S&P/ASX200 gained 0.7 of a point, or 0.01 per cent, to 8783.9
* The broader All Ordinaries fell 15.5 points, or 0.17 per cent, to 8921.5
One Australian dollar trades for:
* 69.64 US cents, from 69.77 US cents at 5pm AEST on Friday
* 110.21 Japanese yen, from 110.46 Japanese yen
* 62.30 euro cents, from 62.28 euro cents
* 52.65 British pence, from 52.69 pence
* 124.44 NZ cents, from 124.48 NZ cents
