ASX 200 ends its eight-session winning streak
RBA expected to cut rates by 25 basis points
New Hope Corporation ends lowest in nearly a month
Updates to close
By Sherin Sunny
May 19 (Reuters) - Australian shares snapped an eight-session rally to end lower on Monday as commodity stocks weighed, while investors awaited what is a widely expected rate cut by the central bank.
The S&P/ASX 200 index .AXJO ended 0.6% lower at 8,295.1 points.
It had rallied around 2.4% in the past eight sessions, its longest winning streak since August, when it gained around 4.5% in 10 consecutive sessions.
The Reserve Bank of Australia $(RBA)$ is widely expected to lower interest rates by 25 basis points on Tuesday and deliver two more later this year as core inflation remains tamed within the central bank's target range, a Reuters poll showed.
"I suspect the market has largely priced in the cut," said Henry Jennings, a senior market analyst at Marcus Today.
Jennings, however, thinks the hawkish 25 cut could be followed by a pause for a while.
Miners .AXMM dropped 1.6% as iron ore prices fell after China, Australia's largest trading partner, reported tepid economic data. IRONORE/
BHP Group BHP.AX, Rio Tinto RIO.AX and Fortescue FMG.AX ended between 1.3% and 4.9% lower.
Energy stocks .AXEJ closed down 1.8% as global oil prices fell. O/R
New Hope Corporation NHC.AX, the top loser on the sub-index, shed 7.1% after the coal miner lowered its annual production and sales forecast.
However, gold stocks .AXGD surged to end 2.1% higher, tracking strong bullion prices after President Donald Trump's tariff threat fuelled safe-haven demand. GOL/
Evolution Mining EVN.AX and ASX-listed shares of Newmont NEM.AX ended 3.2% and 2.5% higher, respectively, and were among the top gainers on the benchmark.
Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 ended 1.2% lower at 12,629.07 points.
(Reporting by Sherin Sunny in Bengaluru; Editing by Savio D'Souza)
((Sherin.Sunny@thomsonreuters.com))
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