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Minutes show RBA considered raising rates

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James Hardie top loser on the benchmark

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Tech stocks close higher tracking overnight gains from

Nasdaq

(Updates to close)

By Sherin Sunny

May 21 (Reuters) - Australian shares ended lower on

Tuesday, after minutes from the central bank's last meeting

showed it had considered raising rates before deciding to stand

pat while a drag in building materials maker James Hardie offset

a rally in tech shares.

The S&P/ASX 200 index fell 0.2% to 7,851.70 points

at the close of trade. The benchmark had gained 0.6% on Monday.

Minutes from the Reserve Bank of Australia's (RBA) May board

meeting showed the central bank considered increasing its 4.35%

cash rate due to higher inflation risks, before holding it

steady.

Analysts at ANZ Research said in a note that any resumption

of tighteining from the RBA if it sees inflation was unlikely to

return to the band over the next few years.

James Hardie Industries ( JHX ), the largest global maker

of fibre cement products, emerged as the top loser on the

benchmark after it lowered fiscal 2025 outlook as high interest

rates have kept a lid on housing demand.

Casino operator Star Entertainment Group ended the

day 7.4% lower, after Hard Rock International, the chain that

runs the storied Hard Rock Cafe hotels and restaurants, denied

any involvement in a takeover bid.

Diagnostics firm Sonic Healthcare ( SKHCF ) was among the top

drags for the day, after flagging lower-than-expected earnings

reflecting inflation and currency exchange impacts.

Tech stocks rallied after Nasdaq ended at a record

high overnight.

Shares in tech major Block rose 1.2%.

Telecom operator Telstra Group ( TTRAF ) ended 2.7% lower

after it announced intention to cut up to 2,800 jobs in bid to

streamline operations amid stiff market competition from cheaper

communication services.

Mining stocks ended 0.04% lower despite a rise in

iron ore prices.

Gold stocks closed 0.6% lower as bullion fell from a

record high.

New Zealand's benchmark S&P/NZX 50 index closed 0.5%

lower to finish the session at 11,675.99 points.