The S&P/ASX 200 index settled down 0.86 per cent at 6,821.2 points, halting two days of gains, with trading volumes at about half of the 30-day average during most of the session.
Earnings from the Commonwealth Bank of Australia, the country’s biggest lender are due on Wednesday, while Newcrest Mining, Australia’s biggest gold miner by market cap, and AGL Energy, the biggest power retailer in the country, will report results later in the week.
In a bright spot, asset manager Macquarie Group jumped nearly 7 per cent and was the biggest percentage gainer on the benchmark after the company reported that third-quarter profit from its commodities trading and dealmaking units rose sharply.
However, its gains failed to prop up the broader financial sub-index which closed 0.7 per cent lower. Bendigo and Adelaide Bank and Bank of Queensland were among the top drags on the sector.
Tech stocks lost 1 per cent after a strong start earlier in the day, as buy-now-pay-later firm Afterpay retreated from a record high and closed down 0.8 per cent.
A Reuters report showed that identity theft complaints in Australia involving buy-now-pay-later finance doubled to a record last year, raising calls for authorities to rein in the booming market.
Energy stocks and miners gave up gains accrued through the session in the last hour of trading and closed down 0.6 per cent and 0.2 per cent, respectively.
In New Zealand, the benchmark ended 1 per cent lower at 12,927.69 points.
