(Reuters) - Australian shares closed flat on Tuesday as a sharp fall in materials stocks offset gains in health care stocks and banks.
The S&P/ASX 200 index <.AXJO> erased early gains to finish 2 points lower at 6,102.10. The benchmark added 0.2 percent on Monday.
Materials accounted for most of the losses on Tuesday, hurt by a sharp fall in iron ore prices.
Global miner BHP <BHP.AX> fell 1 percent, while rival Rio Tinto Ltd <RIO.AX> dropped 2.2 percent to a two-week low.
Conversely, health care stocks led the gainers, with pharmaceutical firm CSL Ltd <CSL.AX> rising 2.7 percent to a record high, while bionic ear maker Cochlear Ltd <COH.AX> climbed 1.1 percent.
Mathan Somasundaram, market portfolio strategist with Blue Ocean Equities, said health care stocks were benefiting from a weaker local currency as they were global players.
The Australian dollar sank to its lowest in a year on Tuesday. [AUD/]
Banks also rose, with index heavyweight Commonwealth Bank of Australia <CBA.AX> rising 0.3 percent, while Macquarie Group Ltd <MQG.AX> firmed about 1.8 percent to a record high.
New Zealand's benchmark S&P/NZX 50 index <.NZ50> slumped 1.2 percent or 111 points to finish the session at 8,863.
Utilities and telecommunication services stocks accounted for most of the losses, with Spark New Zealand Ltd <SPK.NZ> dipping about 3 percent, its biggest drop in nearly three months, while Mercury NZ Ltd <MCY.NZ> slid 3.9 percent to its lowest since June 5.
(Reporting by Aditya Soni in Bengaluru; Editing by Eric Meijer)
