Australia shares reel from U.S. banks' collapse, bets on RBA rate pause grow
Aussie tech, energy stocks drag
Gold stocks rally on bullion demand
NZ economy likely contracted in Q4 - Reuters poll
U.S. inflation data due later in the day
Updates to close
By Savyata Mishra
March 14 (Reuters) -Australian shares fell at close on Tuesday, amid broad-based weakness led by energy stocks, as fears of the collapse of a U.S. tech-focused lender led investors to put off bets on further rate hikes by the local central bank in April.
The S&P/ASX 200 index .AXJO ended 1.4% lower at 7,008.90, extending its rout into the third straight day.
Equities markets in Asia tanked as the fallout from the collapse of Silicon Valley Bank SIVB.O and Signature Bank SBNY.O widened overnight, altering bets on policy-tightening outlook worldwide. MKTS/GLOB
Back home, investors were expecting the Reserve Bank of Australia (RBA) to leave the cash rate unchanged at 3.6%, underlining a reversal in sentiment from just a week ago when they wagered rates to peak at 4.2%.
However, analysts at top Australian banks said domestic economic data will guide the central bank's moves on interest rates, and not the SVB collapse.
"The RBA has made it clear that they are close to a pause, with the data over coming weeks to provide guidance," said Stephen Halmarick, chief economist with CBA.
Three other data sets due ahead of the April policy meeting are February's employment data, retail sales, and consumer price indicator.
Australian tech sub-index .AXIJ slid 3.4%, led by an 8.5% slump in battery materials maker Novonix NVX.AX and a 1.5% dip in heavyweight Xero Ltd's XRO.AX shares.
Oil prices fell more than $1, driving the energy stocks .AXEJ down 2.8%
Woodside Petroleum WDS.AX and Ampol Ltd ALD.AX were down more than 2% each.
Financials .AXFJ extended losses into the third consecutive session, with the major banks down between 0.2% and 1.5%, except the Commonwealth Bank of Australia CBA.AX that closed 0.2% higher.
Miners .AXMM fell 1.6% as mining giants Rio Tinto RIO.AX, Fortescue Metals FMG.AX, and BHP Group BHP.AX lost between 0.8% and 1.8%.
Gold stocks .AXGD stood out with a 2% gain and were one of the top performers on the index as strong demand for safe-haven bullion supported the sector.
Newcrest Mining NCM.AX and SSR Mining SSR.AX advanced 3% and 5.4%.
New Zealand's benchmark S&P/NZX 50 index .NZ50 slipped 0.7% to 11,595.47 points, ending down for the fifth straight session.
A Reuters poll found that the economy may have contracted in the fourth quarter as the market questions the need for an 18-month tightening cycle.
Reporting by Savyata Mishra in Bengaluru; Editing by Dhanya Ann Thoppil
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