BHP and National Australia Bank drag Aussie shares lower

By Reuters News

By Aamir Khalid

Oct 20 (Reuters) - Australian shares edged lower on Tuesday, as National Australia Bank's restructuring costs weighed on financials, while top miner BHP slipped on a decline in quarterly copper production.

The benchmark S&P/ASX 200 index .AXJO closed 0.3% lower at 8,816.90 points, having recovered from a 1.1% decline earlier in the session, its steepest intraday fall in nearly three weeks.

National Australia Bank NAB.AX shares ended 1.8% lower after having slumped nearly 4% earlier. Australia's largest business lender said it expects a pre-tax restructuring charge of about A$300 million (about $209.5 million) in 2027 and will cut up to 2,500 jobs.

That pulled financials .AXFJ down 0.5%, with only Commonwealth Bank of Australia CBA.AX among the "Big Four" rising at 0.1%.

BHP BHP.AX shares fell as much as 2.6% after the world's top copper producer posted a steep drop in first-quarter copper output after inclement weather and a fatal accident forced temporary halts at its Escondida mine in Chile.

Peer Rio Tinto RIO.AX lost 1%, while miners .AXMM shed as much as 2.2%. MET/L

Investors now await comments from Reserve Bank of Australia Deputy Governor Andrew Hauser on Wednesday, when he is likely to be asked about the chance of a fifth rate hike this year.

Westpac expects core inflation to rise 0.9% this quarter, lifting annual inflation to 3.5% against the RBA's 3.3% forecast.

Even so, Westpac analysts expect the central bank to stand pat, as below-trend growth and a gradually easing labor market should be enough to bring inflation back to target.

Elsewhere on the market, energy stocks .AXEJ clocked a 1.3% fall, their worst day since the start of October.

Healthcare stocks .AXHJ gained nearly 0.9% to their highest close since January 30, with biotech giant CSL CSL.AX up 1.2% and Cochlear COH.AX gaining more than 5%.

The New Zealand benchmark S&P/NZX 50 index .NZ50 fell 0.2% to 13,631.69 points.

($1 = 1.4320 Australian dollars)

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