(Reuters) - Australian shares rose on Monday as gains in financials outweighed a sharp fall in health care stocks which were hammered by the news of a public inquiry into the aged-care system.
The S&P/ASX 200 index <.AXJO> rose 0.3 percent or 19.70 points to 6,185.00 at the close of trade. The benchmark firmed 0.6 percent on Friday.
Banks dominated the gains on Monday, with the financials index <.AXFJ> climbing 0.6 percent.
Australia and New Zealand Banking Group Ltd <ANZ.AX> firmed 0.9 percent and was among top supporters to the benchmark, while National Australia Bank Ltd (NAB) <NAB.AX> firmed 0.8 percent.
NAB announced on Monday the departure of its top consumer banking executive in the wake of a Royal Commission enquiry into the financial services sector that found widespread malpractice, including debiting life insurance premiums from dead people's accounts.
News that Australia will open a similar Royal Commission inquiry into the aged-care sector put pressure on the shares of aged-care service providers. The enquiry follows a spike in reports of abuse at aged-care homes.
Regis Healthcare Ltd <REG.AX> plunged 17.1 percent to a record low, while Estia Health Ltd <EHE.AX> slumped 18.6 percent to its lowest since December 2016.
The wider health care index <.AXHJ> dipped 0.9 percent. Drugmaker CSL Ltd <CSL.AX> dropped 1.1 percent and was the top drag on the benchmark.
Materials also fell, hurt by a fall in iron ore futures and copper prices. [IRONORE/] [MET/L]
Miner BHP <BHP.AX> dipped 0.7 percent, while rival Rio Tinto Ltd <RIO.AX> dropped 0.2 percent.
In New Zealand, the benchmark S&P/NZX 50 index <.NZ50> rose 0.770 points to finish the session at 9,271.53.
Consumer staples rose, with a2 Milk Company Ltd <ATM.NZ> rising 5 percent to its highest since Sept. 6, offsetting the health care sector's losses.
Fisher & Paykel Healthcare Corporation Ltd <FPH.NZ> dropped 0.5 percent.
(Reporting by Aditya Soni in Bengaluru; Editing by Eric Meijer)
